MARKET DEVELOPMENT
Press Statement For Project FELDA - Rajawali
Press Statement For Project FELDA - Rajawali
23/12/2016 (Bernama) - Federal Land Development Authority (FELDA) through its subsidiary, FIC Properties Sdn Bhd (FICP) has signed a Sale and Purchase Agreement (SPA) with Rajawali Group to acquire a significant stake in the latter's PT Eagle High Plantations Tbk (EHP), one of Indonesia's largest palm oil companies.
Under the SPA, FICP will acquire a 37 per cent stake in the Jakarta-listed EHP.
The US$505.4 million acquisition will mean that FELDA will among others have access to more than 320,000 ha land bank in Indonesia (about 4.4 times the size of Singapore), including more than 125,000 ha of planted nucleus.
Further details on the acquisition could not be provided at this moment as the SPA is subject to approval of the relevant authorities, both in Malaysia and Indonesia.
FELDA said in a statement its decision to acquire the stake is in line with its long-term goal to become among the world’s largest palm oil groups.
"We have to continue to show growth as staying stagnant will mean that FELDA will be left behind as our competitors are expanding fast in this growing industry.
"To get this growth, FELDA needs to venture into new frontiers as additional plantation land in Malaysia is becoming scarce," it added.
Apart from gaining access to more land bank, the acquisition will also help FELDA and its associate companies to make further inroads into the lucrative and expanding domestic market in Indonesia.
“We believe that the acquisition will bring positive development for the industry and the country.
"The investment in a major palm oil player in Indonesia will act as an impetus and further cement stronger bilateral ties between Malaysia and Indonesia to move forward the agenda of the recently established Council of Palm Oil Producing Countries (CPOPC) of which both are founding members,” it said.
Under the SPA, FICP will acquire a 37 per cent stake in the Jakarta-listed EHP.
The US$505.4 million acquisition will mean that FELDA will among others have access to more than 320,000 ha land bank in Indonesia (about 4.4 times the size of Singapore), including more than 125,000 ha of planted nucleus.
Further details on the acquisition could not be provided at this moment as the SPA is subject to approval of the relevant authorities, both in Malaysia and Indonesia.
FELDA said in a statement its decision to acquire the stake is in line with its long-term goal to become among the world’s largest palm oil groups.
"We have to continue to show growth as staying stagnant will mean that FELDA will be left behind as our competitors are expanding fast in this growing industry.
"To get this growth, FELDA needs to venture into new frontiers as additional plantation land in Malaysia is becoming scarce," it added.
Apart from gaining access to more land bank, the acquisition will also help FELDA and its associate companies to make further inroads into the lucrative and expanding domestic market in Indonesia.
“We believe that the acquisition will bring positive development for the industry and the country.
"The investment in a major palm oil player in Indonesia will act as an impetus and further cement stronger bilateral ties between Malaysia and Indonesia to move forward the agenda of the recently established Council of Palm Oil Producing Countries (CPOPC) of which both are founding members,” it said.