FGV CONFIRMS IN TALKS TO SELL TRURICH

Planter hopes to complete disposal of its 50:50 joint venture with TH for RM1b, including debts, by September

FGV Holdings Bhd confirmed that it is in talks with seven suitors to sell Trurich Resources Sdn Bhd, its 50:50 joint venture with Tabung Haji (TH), for around RM1 billion.

“Yes, Trurich Resources is one of the assets that we are planning to divest and monetise,” said FGV

chief executive officer Datuk Haris Fadzilah Hassan at a briefing, here, yesterday.

“We hope to sell it for RM1 billion, including debts,” he said in response to a report that FGV and TH are selling Trurich Resources, which controls 42,000ha of oil palm estates and a mill in Kalimantan, Indonesia.

While declining to identify the suitors, Haris said three of the interested buyers were planning to buy both estates owned by Trurich Resources while the other four were only keen to buy only one.

“We prefer to sell en bloc,” said Haris.

He said FGV hoped to complete the deal by September.

Trurich Resources had previously lodged a police report against five individuals for allegedly misleading the company into overpaying for the oil palm plantations at US$58 million (RM241.8 million) between 2008 and 2009.

The five are former TH chief executive officer Tan Sri Ismee Ismail, former TH Plantations Bhd chief executive officers Datuk Seri Zainal Azwar and Datuk Rashidi Omar and Indonesians Drs H. Rajasa Abdurachman and Badai Sakti Daniel.

Haris said FGV wanted to reap RM350 million from sales of noncore and non-performing assets.

He said the liquidation of Felda Engineering Services and Felda Properties would likely be completed by year-end.

Haris said FGV was still pursuing a RM514 million claim against former non-executive directors over the loss incurred in the purchase of Asia Plantation Ltd in 2014.

FGV yesterday reported a net loss of RM3.37 million in the first quarter ended March, compared with a net profit of RM1.12 million a year ago, largely due to a sharp drop in palm oil and sugar prices.

Revenue slipped nine per cent to RM3.3 billion from the previous corresponding quarter.

PIC BY ZULFADHLI ZULKIFLI FGV Holdings Bhd group chief executive officer Datuk Haris Fadzilah Hassan (left) with chief financial officer Datuk Mohd Hairul Abdul Hamid at the company’s first-quarter financial results announcement in Kuala Lumpur yesterday.