KUALA LUMPUR: Felda Global Ventures Holdings Bhd (FGV) has successfully secured acceptances to acquire a 100 per cent equity in Pontian United Plantations Bhd as part of plans to expand its plantation landbank.
The total cash consideration for the acquisition amounted to RM1.204 billion.
President and Chief Executive Officer Mohd Emir Mavani Abdullah said the acquisition would increase the company's crude palm oil (CPO) production by about 80,000 metric tonnes per annum.
"The group will also benefit from the synergies derived from the operations of both Pontian and FGV's estates in Sabah," he said in a statement to Bursa Malaysia today.
Through its associate Felda Holdings Bhd, FGV is currently the largest CPO producer in the world, producing some 3.3 million metric tonnes in 2012.
Pontian’s plantation land is fully planted and located primarily in the Kinabatangan and Lahad Datu regions in Sabah.
Its land is also within the proximity of Felda Sahabat estates and FGV Group’s refinery in Lahad Datu, which will create synergy and improve the efficiency of operations.
Pontian's integrated operations also include an palm oil processing mill and a kernel crushing facility.
In addition, it owns plantation land in Kukup, Johor which is strategically located due to its proximity to the Tuas second link between Johor and Singapore.
As at Dec 31, 2012, Pontian had a healthy balance sheet with a total of RM256 million in cash and cash equivalents, as well as being debt free.
FGV chairman Tan Sri Mohd Isa Abdul Samad said the deal would increase the group’s brownfield plantation in Malaysia and positively contribute to its bottomline as well as benefit the group and all Felda settlers.
FGV launched a voluntary conditional takeover offer for all Pontian shares at RM140 each on July 18 this year.
The buyout had been subject to the condition that it received acceptances of more than 50 per cent of Pontian shares.
The offer price had subsequently been adjusted to RM139.20 per share due to Pontian’s payment of interim dividend of 80 sen per share on Sept 2, 2013.
As at the final closing date today, FGV received valid acceptances for a total of 8,648,280 Pontian shares representing 100 per cent of the issued and paid-up capital of Pontian. -- Bernama