Felda Global buys Indonesian plantation for RM44mil

KUALA LUMPUR: Felda Global Ventures Holdings Bhd (FGVH) today acquired its first upstream plantation acquisition since its listing last year.

The company's subsidiary Felda Gloval Ventures Kalimantan Sdn Bhd today signed a share purchase agreement with PT Temila Agro Abadi (TAA) and PT Landak Bhakti Palma (LBP) to acquire a 95% majority stake in both for RM44mil.

With this agreement, FGV will add another 21,037 hectares of plantations in Kalimantan Barat, Indonesia.

Both land areas are green field plantations and the acquisition will entail another RM283.55mil in the next five to six years for agricultural costs and capital expenditures, FGVH said in a press statement today.