PETALING JAYA: Felda Global Ventures Holdings Bhd (FGV) has sealed its RM1.2bil takeover of Sabah-based Pontian United Plantations Bhd.
The plantation giant said in a filing with the stock exchange that it had received acceptances for 100% of the shares in Pontian, comprising 8.65 million shares, via its RM140 per share offer as at the closing date yesterday.
The acquisition was set to boost FGV’s brownfield plantation landbank and crude palm oil (CPO) production by some 80,000 tonnes per annum, chairman Tan Sri Isa Samad said in a statement.
It is understood that Pontian’s main assets include 16,000ha of mature oil palm land, mostly in Sabah, as well as a 90-tonne-per-hour mill and kernel crushing facility.
FGV, through its associate Felda Holdings Bhd, is the world’s largest CPO producer, churning out 3.3 million tonnes last year.
“FGV continuously seeks opportunities, be it organic or inorganic, and with the acquisition of Pontian, we look to strengthen our pole position in the plantation sector, specifically the oil palm plantation business,” Isa said.
According to the agribusiness firm, Pontian’s plantation land is fully planted and located primarily in Kinabatangan and Lahad Datu in Sabah.
Its land in Sabah is also close to Felda Sahabat estates and FGV’s refinery in Lahad Datu, facilitating logistics and efficiency of operations.
While some shareholders of Pontian were initially said to have questioned the deal on grounds that the company’s 658ha of plantation land in Kukup, Johor – which enjoys proximity to the Tuas second link between Johor and Singapore – had been undervalued, it would appear from the 100% take-up that they had acceded.
TSH Resources Bhd had last year tried and failed to buy out Pontian with an offer of RM90 per share, or RM624.8mil.
FGV closed yesterday one sen higher to RM4.21, with 1.31 million shares traded.
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