`


THERE IS NO GOD EXCEPT ALLAH
read:
MALAYSIA Tanah Tumpah Darahku

LOVE MALAYSIA!!!


 


Monday, July 20, 2015

FGV: Pua’s ‘political grandstanding’ regrettable

Proposed partnership with Sondakh’s Eagle High in line with FGV’s revenue enhancement, cost-optimisation and operational excellence objectives, it says.
tony-pua_peter_fgv_600
KUALA LUMPUR: Felda Global Ventures Holdings Bhd (FGV) today expressed its disappointment at comments made by opposition MP Tony Pua two days ago in questioning its proposed partnership with Indonesian tycoon Peter Sondakh’s Eagle High Plantation.
“[H]e should have contacted us or visited our website for clarification or comment, rather than indulge in political grandstanding,” FGV told FMT in a statement this morning.
Clarifying the proposed partnership, FGV claimed that it was in line with its own “5-year transformation plan for revenue enhancement, cost-optimisation and operational excellence” to make itself a palm oil giant within ASEAN and create a “global game-changer with clear benefits for both countries and companies.”
“With regard to the proposed stake of Rp400 a share, the rights offering price could have been Rp1,000 or Rp2,000,” FGV claimed.
The company explained that the valuation price for the plantation of $17,400 per hectare was fair and reasonable.
Pointing to other plantation giants in Indonesia, FGV said that First Resources Ltd, which owns 190,000 hectares of land, was currently trading at the same price. Likewise, it claimed that Bumitama Agro Ltd’s valuation would also have exceeded $17,000 per hectare had it not suffered a 25% decline in its share price.
“There is no seller of large plantation that is available at $17,400 per hectare,” FGV’s statement added.
It explained further that the rights issue undertaken by the target entity during February’s amalgamation of BW Plantations Tbk was “as per standard market operation” and that the share price set at the time had been recommended by financial advisors and underwriters after taking into consideration various factors, including the interests of its public shareholders.
“It should also be remembered that at the time, Rajawali had no idea (that) FGV would come to it and request to partner (with) Rajawali (in) its global strategic operations,” FGV told FMT. Hence, it said that the rights offering share price was not determined based on a future transaction with FGV as one had not been contemplated at the material time.
In any event, FGV assures that its commitment to the deal as well as its investment policy will be subject to a thorough due diligence process and will be deliberated by both FGV’s board and its shareholders, whose approvals are necessary for the partnership to proceed.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.