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M'sia's plantation giant not just looking at Asian Plantations

Publication Date : 04-03-2014


Plantation giant Felda Global Ventures Holdings Bhd (FGV) is evaluating several brownfield plantations, not limited to Asian Plantations Ltd (APL).

This confirms a StarBizWeek report on March 1 that FGV has set its sights on APL, a Singapore-based plantation company listed on the Alternative Investment Market on the London Stock Exchange.

However, FGV told Bursa Malaysia that at this point, it had not come to a conclusive decision. “We will make the necessary announcements to Bursa on any acquisition upon obtaining the approval of our board of directors as per disclosure requirements,” it said.

Until then, FGV said it wished to inform that it had no material information to divulge.

In line with its aim to become one of the top-ten agri-commodity players in the world by 2020, FGV added that it was continuously exploring potential deals that supported its growth strategy.

StarBizWeek had earlier reported that FGV was on the lookout for potential landbank acquisition targets. The report said that discussions between the two parties were still ongoing, with the possibility of a deal being struck in the coming weeks.

Analysts are generally positive on the possible acquisition of APL, but do not expect any earnings contribution in the near term, as APL had made a net loss of US$6.9 million for the financial year ended Dec 31, 2012 (FY12).

“Consensus has forecast APL’s net loss to widen to $12.3 million in 2013 before narrowing to a smaller loss of $5.5 million in 2014,” said AmResearch.

Although loss-making, APL is appealing given its strategic location, which is close to the deep-water refinery hub in Bintulu, said PublicInvest Research in a note.


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