KUALA LUMPUR: FGV Holdings Bhd
(FGV) has clarified that its joint venture (JV) with United Arab Emirates-based IFFCO Group remains resilient and unaffected by IFFCO’s ongoing corporate exercise.
In a statement today, FGV said the JV entity, known as FGV IFFCO Group, comprises three companies, namely FGV IFFCO Sdn Bhd, FGV IFFCO Trading Sdn Bhd and FGV IFFCO France SA.
"Our JV companies remain resilient and unaffected by this exercise. Supported by strong fundamentals and sound governance, they continue to deliver value to stakeholders and maintain the confidence of the market," said FGV group chief executive officer Fakhrunniam Othman.
He added that as a shareholder, FGV is fully committed to supporting the FGV IFFCO Group and would ensure that the JV is managed with the highest professionalism to deliver sustainable value to shareholders.
Incorporated in 2006, FGV IFFCO Group markets a wide range of vegetable oil products, including cooking oils, fats and derivatives, while also providing logistics solutions for sales and distribution.
FGV stressed that the JV companies operate independently with minimal exposure to IFFCO Group’s corporate exercise, with all transactions conducted on market-driven commercial terms.
The group also has representatives on the boards and management of the JV companies to ensure sound governance and prudent management.
"FGV IFFCO Group remains resilient and continues to deliver value to shareholders. Year-to-date, the group recorded a profit of RM49 million, reflecting stable operations despite broader market headwinds,” it said.
FGV said its own financial standing remained steady, underscored by its AA- credit rating.
"Above all, FGV wishes to reassure stakeholders that its JV with IFFCO remain firm amid the IFFCO Group’s ongoing exercise," it added. - Bernama
