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 from Koperasi 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). – TheStarOnline
