FGV terminates JV with Lipid Venture after five years

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KUALA LUMPUR (Feb 9): Felda Global Ventures Holdings Bhd (FGV) has terminated its five-year-old joint venture (JV) with Lipid Venture Sdn Bhd to build and operate a plant to produce tocotrienol (vitamin E) from refined bleached palm oil.

In a filing with Bursa Malaysia, FGV said both companies have mutually agreed to terminate the JV. FGV however, did not give a reason for the move.

On Nov 13, 2013, FGV said its wholly-owned subsidiary Felda Global Ventures Downstream Sdn Bhd (FGVD) had entered into a JV and shareholders’ agreement with Lipid Venture for the proposed venture and that the plant would be located in Kuantan, Pahang.

FGV had said then, that the JV company would be funded by external funds and the Performance and Management Delivery Unit’s grant under entry point project 8.

"The termination of this JV and shareholders’ agreement would not have any financial impact on FGV and its subsidiaries," the filing added.

FGV shares closed unchanged at RM1.87 today, with 9.22 million shares done, bringing a market capitalisation of RM6.79 billion.