KUALA LUMPUR: The Federal Land Development Authority (Felda) confirms that the Rajawali Group has secured Indonesian authority’s approval to sell a non-controlling stake in Indonesian palm oil company PT Eagle High Plantations Tbk for US$505.4 million (RM2.24 billion) to Felda.

The news confirmed an earlier report by The Edge Financial Daily on Feb 2, which said the the controversial buy – which has been described as pricey and favourable only to the Rajawali Group by some of the deal’s critics – has obtained Jakarta’s consent on Jan 25, according to an official letter sighted by the daily.

"We have been notified by Rajawali Group that it has obtained the relevant Indonesian authority's approval to sell its 37% stake in Eagle High to FIC Properties Sdn Bhd," Felda said in a statement today.

"We are now in the midst of some administrative processes that we need to comply with and the investment in Eagle High is expected to be concluded by end of February or at the latest early March," it added.

Prior to this, FIC Properties had signed a sale and purchase agreement with Rajawali Group on Dec 23, 2016. Felda said the approval is a manifestation of "strong bilateral relations" between Malaysia and Indonesia.

"We are refocusing on what we are best at -- palm oil industry. Six decades of experience has proven that the palm oil business is our forte and due to the given current economic situation, we wish to continue in the industry that we are familiar with," it said.