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.