KUALA LUMPUR: Felda Global Ventures Holdings Bhd (FGV) has agreed to buyout Koperasi Permodalan Felda Malaysia Bhd's (KPF) 51% stake in Felda Holdings Bhd for RM2.2bil, or RM19.61 apiece.
The agribusiness giant currently owns 49% of Felda Holdings, while the Ministry of Finance Inc has one golden share.
“The proposed acquisition is subject to the approvals of KPF delegates and shareholders of FGV, and is expected to be completed by year-end. The purchase would be funded by a combination of initial public offering proceeds and borrowings,” FGV said in a filing with Bursa Malaysia yesterday.
“With the proposed acquisition, FGV would truly be a fully integrated oil palm plantation company.
“This would enable FGV to attain operational efficiencies as well as synergies within the plantation value chain of the FGV group,” it added.
This newspaper had reported last week that FGV was in talks to optimise and possibly raise its 49% stake in Felda Holdings, the world’s No. 1 crude palm oil (CPO) producer by volume.
“We hope to streamline operations between FGV and Felda Holdings. The shareholding structure may be reorganised. Some of the assets are better off with FGV,” its president and CEO Mohd Emir Mavani Abdullah had told StarBiz then.
Felda Holdings produced 3.3 million tonnes of CPO in 2012, accounting for 8% of the world’s production that year.
It employs almost 19,000 people, complemented by a labour force of more than 40,000 at 138 Felda-owned estates, 71 palm oil mills, seven refineries, four kernel-crushing plants, nine rubber factories, manufacturing plants, and several logistics and bulking installations throughout Malaysia and several overseas locations.
“The acquisition would also align the management and equity interest of the midstream and downstream activities,” FGV said.
“The proposed acquisition is expected to contribute positively to the profitability of FGV, as Felda Holdings is a relatively profitable group.”
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