Malaysia's FGV defends Indonesia deal

FGV group president and CEO Datuk Mohd Emir Mavani Abdullah said the company was paying a lower enterprise value (EV) for Eagle High Plantations at US$17,400 per planted ha, contrary to market talk that its purchase of Indonesia

JAKARTA: Felda Global Ventures Holdings Bhd (FGV), which came under scrutiny for the proposed purchase of plantation assets from Peter Sondakh’s Rajawali Group in Indonesia, has defended the deal, saying that it was being transacted at one of the lowest valuations in three years.

FGV is buying a 37% stake in PT Eagle High Plantations Tbk for US$680mil (RM2.5bil). However, the entire company has a market capitalisation of US$1.04bil, indicating a hefty premium.