No Bank Negara green light yet for FGV purchase of PT Eagle stake

On June 12, FGV announced a proposed acquisition of a 37% stake in PT Eagle High Plantations from the Rajawali Group of Indonesia that is controlled by tycoon Tan Sri Peter Sondakh for US$680mil. Since the deal was announced, Eagle High shares have fallen more than 42%, while crude palm oil down by 12% on concerns of slowing China growth. At the close of RM1.49 on Friday, FGV

PETALING JAYA: Felda Global Ventures Bhd (FGV) has not remitted the deposit for its purchase of a substantial stake in Indonesia-based PT Eagle High Plantations Tbk because approvals have not been obtained yet.

According to banking sources, Bank Negara has not approved the company’s request to remit the 23% deposit of US$174.5mil as part of the preliminary agreement announced in June due to a few reasons.