Felda Global advances on RM2.2b purchase deal
KUALA LUMPUR: Shares of Felda Global Ventures Bhd (FGV) rose to a high of RM4.31 on Monday as investors were positive on its RM2.2bil purchase of the remaining 51% stake in Felda Holdings Bhd (FHB).
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At 10.53am, it was up five sen to RM4.3
0. There were 169,100 shares done at prices ranging from RM4.25 to RM4.31.
The FBM KLCI was up 0.13 of a point to 1,785.88 after falling to a low of 1,775. Turnover 531.42 million shares valued at RM255.75mil. There were 194 gainers, 304 losers and 257 counters unchanged.
CIMB Equities Research was positive on FGV’s plan to acquire the remaining 51% of its downstream arm FHB.
The research house expected the cash deal to enhance its FY14 earnings by 5% and reduce the earnings volatility stemming from CPO price movements.
“The acquisition will also allow FGV to gain control of the processing and logistic business and look for further cost and value-added synergies,” it pointed out.
CIMB Research also fine-tuned its earnings numbers for the acquisition of PontianUnited Plantations and raised its sum-of-parts based target price to RM4.73 as it rolled it to end-2014.
FGV to buy remaining 51% of Felda Holdings for RM2.2bil (Update)
KUALA LUMPUR: Felda Global Ventures Bhd (FGV) has proposed to buy the remaining 51% of Felda Holdings Bhd for RM2.2bil as it seeks to have complete control over the entire plantation chain.
FGV said on Friday it would buy the stake, comprising of 112.19 million shares fromKoperasi Permodalan Felda Malaysia Bhd (KPF) or RM2.2bil cash and funding would be from proceeds raised from its initial public offering and borrowings.
“This represents a purchase consideration of approximately RM19.61 per Felda Holdings share based on the issued and paid-up share capital of Felda Holdings as at Sept 30, 2013,” it said.
FGV said the proposed acquisition would see it becoming a fully integrated oil palm plantation company.
"This will enable FGV to attain operational efficiencies as well as synergies within the plantation value chain of the FGV group. The acquisition will also align the management and equity interest of the midstream and downstream activities which FGV had only previously owned 49%,” it said.
The proposed acquisition is subject to the approvals from KPF delegates and the shareholders of FGV. The deal is expected to be completed by the year end.
FGV said Felda Holdings is the world’s largest producer of crude palm oil (CPO), based on production volume.
In 2012, the company produced 3.3 million tonnes of CPO, which account for 8% of the world’s CPO production for 2012.
Felda Holdings has almost 19,000 employees, complemented by a labour force of more than 40,000 workers at 138 Felda-owned estates, 71 palm oil mills, seven refineries, four kernels crushing plants, 9 rubber factories, manufacturing plants and several logistics and bulking installations spread throughout Malaysia and several locations overseas.
KPF is an investment co-operative which promotes and consolidates Felda’s settlers and staff savings. Its core investment is in Felda Group’s equity shareholdings.
Felda Holdings’ paid-up is RM220mil comprising of 219.99 million shares of RM1 each and one specialshare of RM1. The special share which is held by the government through the Minister of Finance (Incorporated).
Felda Holdings’ directors Tan Sri Mohd Isa Abdul Samad, Datuk Suhaimi Zainuddin, Datuk Nozirah Bahari, Datuk Mohd Hafarizam Harun, Datuk Azlin Alias, Datuk DrOmar Salim, Datuk Khairil Anuar Aziz, Datuk Zainal Hassan, Datuk Faizoull Ahmad,Dr. Mohd Emir Mavani Abdullah and Datuk Noor Ehsanuddin Mohd Harun Narrashid.
