article3 Mar 2014 11:55
http://www.thestar.com.my/Business/Business-News/2014/03/01/FGV-eyes-Asian-Plantations-Malaysias-plantation-giant-in-expansion-mode/
Published: Saturday March 1, 2014 MYT 12:00:00 AM
Updated: Saturday March 1, 2014 MYT 11:50:48 AM
FGV eyes Asian Plantations
BY HANIM ADNAN
An Asian Plantations palm oil mill.
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FELDA Global Ventures Holdings Bhd (FGV) is hot on the trail of another round of landbank acquisitions this year.
The cash-rich plantation conglomerate is believed to have set its sights on Asian Plantations Ltd (APL), a Singapore-based plantation company that is listed on the Alternative Investment Market (AIM) of the London Stock Exchange.
Sources close to the deal tell StarBizWeek that discussion are still ongoing between the two parties.
“FGV is going to be busy with its international road show, which will kick-off next week. There is a possibility that the APL deal can be struck in the next few weeks,” adds the sources.
It is still unclear whether FGV is looking to buy up the entire stake in APL or some of its maturing plantation assets. It is believed that the price being negotiated works out to be about RM50,000 per hectare.
As at press time, both FGV Group president and CEO Mohd Emir Mavani Abdullah and APL joint CEO and executive director Graeme Brown are unavailable to comment on the deal.
Last year, FGV undertook several major mergers and acquisitions (M&As), including the RM1.2bil takeover of Sabah-based plantation company Pontian United Plantations Bhd, the RM2.2bil purchase of the remaining 51% stake in its associate company, Felda Holdings Bhd, RM35mil for a 100-tonne-per-hour biodiesel plant in Pahang and RM44.2mil to buy a 95% stake in two plantation companies with 21,037ha of oil palm estates in West Kalimantan.
So, what makes APL such an attractive acquisition target for FGV?
While APL is perceived as a foreign-based group but in reality, it has a 100% Malaysian profile with its subsidiaries involved in oil palm plantations in Sarawak.
The company was listed on AIM in 2009 with 4,795ha of landbank. Its shares traded at 75 pence with a market capitalisation of about US$30mil.