KUALA LUMPUR (Oct 6): Plantation giant Felda Global Ventures Holdings Bhd (FGV), which inked a preliminary one-year agreement with Majlis Amanah Rakyat's unit to explore potential business opportunities in logistics services, said the deal has been terminated.

FGV's unit Felda Transport Services Sdn Bhd inked a Memorandum of Understanding (MoU) with MARA's unit Mara Liner Sdn Bhd on May 12, 2016. At the time, the entities were particularly interested in aviation logistics.

On the one-year anniversary of the MoU, FGV announced to Bursa Malaysia that its board was agreeable to extend the MoU for another year, and was awaiting Mara Liner's greenlight.

Today, it said the MoU has been terminated, but gave no explanation.

“FTSSB and MLSB have agreed to terminate the MoU. The termination of this MoU would not have any financial impact on FGV and its subsidiaries,” its statement read.

It was reported last year that the MoU will allow FGV and Mara Liner to leverage on the supply chain management capabilities of both parties, including the provision of ancillary support services involving engineering, hospitality, project management and IT system development support.

FGV shares closed unchanged at RM1.71 with 2.78 million shares done, for a market capitalisation of RM6.24 billion.