KUALA LUMPUR: Felda Global Ventures Holdings Bhd’s (FGV) acquisition of the remaining stake in Felda Holdings Bhd (FHB) will enhance the former's market value and profitability effective 2014, as the group consolidates the existing upstream, downstream and midstream activities.
After its EGM today, FGV announced that it has obtained it's shareholders' approval to acquire the 51% equity interest in FHB it did not already own from Koperasi Permodalan Felda Malaysia Bhd for a purchase consideration of RM2.2bil or RM19.61 per FHB share.
Post-transaction, FGV would be able to attain operational efficiencies as well as synergies within the plantation value chain of the group.
Group president and CEO Mohd Emir Mavani Abdullah said FGV's objective is to become a fully integrated oil palm plantation company.
He said the acquisition exercise is part of a bigger plan to consolidate its operations.
"We are continuously looking into ways to improve our operational efficiencies. Going forward, we have clear strategies to look into our cost structures, as well as productivity and growth through acquisitions," he told the media.
Group chairman Tan Sri Mohd Isa Abdul Samad said the the acquisition is driven by positive commercial considerations for FGV.
"We are positive that shareholders of FGV will have the prospect of enjoying better results once FGV begins to book earnings in from FHB," he said.
