KUALA LUMPUR (July 26): FGV Holdings Bhd said discussions are still at the preliminary stage over the sale of its 51% strategic stake in MSM Malaysia Holdings Bhd.

The group said it is working on a transformation plan, which includes a review of all underperforming and non-performing businesses, especially its legacy investments.

“There are several initiatives that are ongoing and are at various stages of review and implementation,” FGV said in a stock exchange filing.

This comes after The Edge Financial Daily reported today that FGV was in talks with at least four companies over the sale of the MSM stake.

FGV said since MSM’s Johor refinery came on stream earlier this year, the group’s total refining capacity increased to 2.2 million tonnes, thus allowing it to serve domestic requirements and seek new export opportunities with both FGV and MSM exploring all avenues to successfully enter regional and international markets.

The four companies that are eyeing the MSM stake include IAG Capital Sdn Bhd, which is linked to the family of former Second Finance Minister Datuk Seri Johari Abdul Ghani.

The others are  Singapore-based agribusiness firm Wilmar International Ltd, which is owned by the Kuok Group.

Two unnamed outfits ù one Indonesian and one Chinese — are also vying for the stake.

Shares in FGV closed 5.71% or six sen higher at RM1.11, valuing the company at RM4.05 billion.

Meanwhile, shares in MSM closed 17.95% or 21 sen higher at RM1.38, giving the group a market capitalisation of RM970.11 million.