Image Credit : Citra Borneo Indah
JAKARTA (RambuEnergy.com) – Malaysia’s Federal Land Development Authority (FELDA) through its subsidiary FIC Properties Sdn Bhd has signed a sale and purchase agreement with Rajawali Group to buy 37% of PT Eagle High Plantation Tbk [IDX:BWPT] for US$505.4 million, lower than earlier indicative price.
“Through this deal, FICP will own 37% shares of BWPT at value of US$505.4 million,” said Rajawali Corp Deputy Managign Director Satrio Tjai.
Earlier this month, Rajawali signed a $745 million strategic partnership agreement with Malaysia’s Felda Global Venture, which includes the sale of 37% in Rajawali’s Eagle High Plantation, as well as over 90 percent in the group’s sugar plantation project.
A strategic partnership with Felda, according to Darjoto, would open opportunities for Rajawali to enter the downstream industry as the company taps into Felda’s expertise in the global value chain and its research and development unit.
It appears that Felda bought the shares through other subsidiary firms.
The completion of the transaction is pending on the approval of the relevant authorities in both countries.
Meanwhile, Felda said in a statement that the decision to acquire the stake was in line with its long-term goal to become among the world’s largest palm oil groups.
“The US$505.4mil acquisition will mean that Felda will among others have access to more than 320,000ha land bank in Indonesia (about 4.4 times the size of Singapore), including more than 125,000ha of planted nucleus,” it said.
Felda said it could not provide further details on the acquisition at present as the SPA was subject to approval of the relevant authorities, both in Malaysia and Indonesia.
“We have to continue to show growth as staying stagnant will mean that Felda will be left behind as our competitors are expanding fast in this growing industry.
“To get this growth, Felda needs to venture into new frontiers as additional plantation land in Malaysia is becoming scarce,” it added.
Besides gaining access to more land bank, Felda said, the acquisition would also help it and its associate companies to make further inroads into the lucrative and expanding domestic market in Indonesia. (*)