FGV secures acceptance to buy out Pontian
KUALA LUMPUR: Felda Global Ventures Holdings Bhd (FGV), the world's largest crude palm oil (CPO) producer, has secured full acceptance to buy a 100 per cent stake in Pontian United Plantations Bhd.
FGV launched a RM1.2 billion buyout on Pontian of RM140 per share on July 18.
At the final closing date yesterday, FGV said it had received a total acceptance of 8.64 million shares, representing 100 per cent of the issued and paid-up share spread of Pontian.
FGV president and chief executive officer Mohd Emir Mavani Abdullah said the acquisition will increase the company's CPO production by about 80,000 tonnes per annum.
Pontian owns 16,188ha of plantation land, mostly in Kinabatangan and Lahad Datu, plus a CPO processing mill and kernel crushing facility.
It has a strong balance sheet with zero gearing and RM256 million cash.
The offer is expected to create synergies and improve the efficiency of operations as Pontian's land in Sabah, which is within proximity of Felda's estates and refinery facility in Lahad Datu.
The deal is set to benefit the group's brownfield plantation in Malaysia and positively enhance its bottom line, FGV said.
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