Friday 29 Mar 2024
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KUALA LUMPUR (Dec 29): In an internal re-organisation of its group structure, Felda Global Ventures Holdings Bhd (FGV) has sold its wholly-owned subsidiary, Asian Plantations Ltd (APL), to another wholly-owned subsidiary, Felda Global Ventures Plantations Sdn Bhd (FGVP), for RM567.9 million.

Such move will result in APL, a plantation firm that FGV bought in 2014, to be the wholly-owned unit of FGVP, the group said in a filing with Bursa Malaysia yesterday.

FGVP had on Dec 20 entered into a share sale agreement to acquire 46.76 million ordinary shares or a 100% stake in APL, following which its wholly-owned subsidiary, Felda Global Ventures Plantations (Malaysia) Sdn Bhd entered another agreement for the company on Dec 27.

It is not expected to have any effect on the issued and paid-up capital of FGV or FGV’s substantial shareholders’ shareholdings, or any material effect on the earnings, net assets or gearing of FGV on a consolidated basis, FGV added.

APL, which was then listed on London’s AIM market, was acquired by FGV in August 2014 for 120 million pounds, or RM628 million. Since then, FGV has restructured APL’s RM500 million debt into a Shariah-compliant loan.

Shares in FGV fell 5 sen or 2.87% to RM1.69 today, giving it a market capitalisation of RM6.17 billion.

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