FGV and Golden Land in RM655mil deal

KUALA LUMPUR: Felda Global Ventures Holdings Bhd (FGV) is buying four plantation-based firms and a parcel of oil palm land in Sabah measuring 836.1ha from Golden Land Bhd for RM655mil in cash.

For FGV, the proposed acquisitions are expected to improve its brownfield land and age profile of its oil palms.

Meanwhile, Golden Land sees the proposed disposals as offering an opportunity for the group to unlock and realise the value of its investments in the companies and land being sold.

However, Golden Land may be classified as a “cash company” and/or an “affected listed issuer” pursuant to Practice Note 16 and Practice Note 17 (PN17) of the Listing Requirements. This means it would need to submit a regularisation plan, as the board plans to maintain the company’s listing status.

FGV and Golden Land told Bursa Malaysia that FGV’s unit Pontian United Plantations Bhd and/or its nominee had on Monday inked a conditional sale and purchase agreement to buy Golden Land’s four subsidiary companies and the land in Beluran.

The land is currently charged to Hong Leong Bank Bhd (HLBB) as part of the security for loan given to Golden Land. Its market value, as assessed by CH Williams Talhar & Wong (Sabah) Sdn Bhd, is RM71.72mil.

Golden Land will procure the redemption statement issued by the relevant financiers in respect of the borrowings of the four subsidiaries and for the purposes of releasing all securities offered by the companies as third-party securities for any borrowings of the Golden Land group. 

The company will also obtain a redemption statement from HLBB for the partial release of security in respect of the loan granted by HLBB to Golden Land to facilitate the discharge of charge on the land.

The sale and purchase of the land and the shares will be completed within three months from the unconditional date or any other date that Golden Land and FGV decide later.

Golden Land estimated that the group would gain RM15.23mil from the proposed disposals. However, it has yet to determine the amount of the net proceeds and how exactly the money would be used.

Golden Land, which will still own about 8,497ha of plantation lands after the proposed exercise, said the disposals may trigger criteria under PN17.

The continuous listing of Golden Land on the Main Market may then depend on the ability of board and management to formulate a regularisation plan within a stipulated period.

FGV closed 1 sen lower at RM1.91 on Monday. Golden Plus, whose trading was suspended on Monday but will resume on Tuesday, last closed at RM1.91.