FGV denies report on land sale talks with Tadmax

  • Business
  • Saturday, 08 Feb 2014

PETALING JAYA: Felda Global Ventures Holdings Bhd (FGV) has denied being in discussions with Tadmax Resources Bhd over the sale of the latter’s land in Indonesia.

“However, the company previously in 2013, had very preliminary exploratory discussions with Tadmax on this matter but no definitive terms were discussed, negotiated and agreed upon,” it said in its filing with Bursa Malaysia yesterday.

FGV was responding to an article published by an English daily on Thursday that said it was involved in a land disposal exercise by Tadmax, that could be worth as much as RM1bil.

The article said that FGV was seen as the front-runner for ownership of the land. It added that Tadmax would also be involved in the felling of trees in the virgin land as well as in replantation efforts.

Tadmax had issued a statement to Bursa on Thursday that it was in preliminary discussions with various parties, including FGV to sell its holdings in Indonesia.

“No definitive terms have been discussed with any party to date and discussions have been generally exploratory,” it had said referring to the article.

Formerly known as Wijaya Baru Global Bhd, Tadmax reportedly owns 80,000ha in Irian Jaya, Indonesia, which is suitable for rubber, sugar cane and oil palm plantations. It also has a felling licence from the Indonesian government to cut down trees in the concession area.

The daily reported that Tadmax would first extract timber from the forested land before converting it into an oil palm plantation. It also stated that K&N Kenanga Holdings Bhd was believed to be advising Tadmax on the deal.

“The company also further wishes to state that it has not appointed any investment banker for the purpose. As such the company wishes to inform that there is no basis for the contents of the aforesaid article,” Tadmax said in its filing on Thursday.

According to the article, Tadmax bought the land for US$80mil (RM264mil) and could probably sell it for as much as US$200mil with the right buyer. Also, it was mentioned that other parties including Tan Sri Ling Chiong Ho, who controls Sarawak Palm Oils Bhd, and Rimbunan Hijau’s Tan Sri Tiong Hiew King, had showed interest in the land.

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