KUALA LUMPUR (June 22): Plantation group Felda Global Ventures Holdings Bhd's (FGV) wholly-owned subsidiary Downstream Sdn Bhd has signed a memorandum of business exploration (MOBE) with Kinh Do Corp and Indo-Trans Logistics Corp to explore a collaboration for a new edible oil venture in Vietnam.

In its filing with Bursa Malaysia today, FGV (fundamental: 1.15; valuation: 1.4) said it is exploring the possibility of entering into a business collaboration or partnership to collectively build and operate a new business to manufacture and distribute branded, packaged edible oil in Vietnam.

“The MOBE is non-binding and sets out the understanding and intention of the parties during this interim exploratory period. The MOBE shall remain valid for six months or such extended period as agreed in writing by the parties,” said FGV.

The group saw further weakness in its share price today, following its shareholder the Employees Provident Fund (EPF)'s opposition to its proposed acquisition of a 37% stake in PT Eagle High Plantations Tbk, while also voicing concerns on FGV's incination to overpay for its assets.

In response, FGV said it will actively reach out to shareholders to allay concerns on the group's business dynamics.

FGV shares fell 4 sen or 2.29% to close at RM1.71, translating to a market capitalisation of RM6.38 billion.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)