The Sun (Malaysia)

FGV hopes to seal Eagle High deal by Nov 30


PETALING JAYA: Felda Global Ventures Holdings Bhd’s (FGV) due diligence for the proposed acquisitio­n of Indonesian palm oil company PT Eagle High Plantation­s will be extended to Nov 30, 2015.

“We are continuing to finalise the proposed acquisitio­n to ensure mutual benefit for all our stakeholde­rs and shareholde­rs. Official announceme­nts will be made to keep all parties up to date in line with regulatory requiremen­ts and corporate governance practices,” FGV group president and CEO Datuk Mohd Emir Mavani Abdullah said in a statement last Friday.

In a filing with the stock exchange, FGV said the company and the vendors are still negotiatin­g the terms of the definitive agreement and aim to sign the documents no later than Nov 30, 2015.

FGV had previously wanted to enter into a definitive agreement for its proposed acquisitio­n in Eagle High by Oct 31.

On June 12, FGV signed a heads of agreement with Rajawali Group to acquire a 37% stake in Eagle High for US$680 million in cash and stocks. Eagle High is the thirdlarge­st plantation group listed in Jakarta. The two companies had planned to announce a final pact by the middle of August, a deadline that was then extended to Oct 31.

The proposed deal will see FGV, via whollyowne­d subsidiary Felda Global Ventures Kalimantan Sdn Bhd, fork out US$592.5 million in cash and issue 95 million new shares to fund the acquisitio­n. FGV is also buying a 95% equity interest in vendor Rajawali’s sugar project for RM249 million.

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