Analysts positive on FGV’s Canada plant disposal

FGV’s share price has slumped 58.5 and is trading at RM1.22.

PETALING JAYA: Analysts have given the thumbs up to Felda Global Ventures Holdings Bhd’s (FGV) proposed disposal of its offseeds crushing and refining plant in Canada to Viterra Inc for RM608.2mil, stating that the sell-off is positive for the group since it is keen to raise funds for working capital and pay debts.

Shares of FGV had taken a beating as investors reacted negatively after it announced it was acquiring a 37% stake in Indonesia’s PT Eagle High Plantations for US$680mil in June. They felt FGV had overpaid in the deal.