KUALA LUMPUR (Dec 31): FGV Holdings Bhd has announced that it is ending a two-year memorandum of understanding (MoU) with Johor Port Bhd (JPB), which is controlled by Tan Sri Syed Mokhtar Al-Bukhary, for the purpose of exploring holding an equity of up to 25% in Fauji Akbar Portia Marine Terminals Ltd (FAP) in Pakistan.  

In a filing with Bursa Malaysia, the plantation group said the MoU, which will expire on Jan 2, 2022, will not be renewed. 

“This is in line with the due diligence findings which do not fulfil the key parameters of a new equity investment.

“The expiration of the MoU would not have any financial impact on FGV and its subsidiaries,” the company said. 

Two years ago, FGV had announced that its subsidiary FWQ Enterprises (Private) Ltd has entered into an MoU with JPB to explore the potential acquisition of a 25% stake in FAP, an operating dry bulk terminal in Port Qasim, Pakistan.

In an exchange filing dated Jan 3, 2020, FGV said FAP had extended an invitation to select a potential investor of up to 25% equity for its future expansion plan, with works comprising land reclamation for additional storage, installation of new unloaders, warehouse extension, installation of new silos and jetty extension.

FGV owns a 65% stake in FWQ, while the balance 35% is held by Westbury Group, a company based in Pakistan involved in trading, refining, manufacturing, shipping, storage, warehousing, insurance and industrial services in the country.

FGV and Westbury Group have existing joint ventures in Pakistan involved in the business of oil refinery, storage and jetty operation, and were previously awarded the sole and exclusive right to set up a liquid cargo terminal in Port Qasim by the Pakistan Federal Government in December 2004, the filing said.

Meanwhile, JPB, wholly-owned by MMC Corp Bhd, runs the Johor Port, which has been in operation for more than four decades and was the catalyst for the development of the Pasir Gudang Industrial Area as well as spearheading the new 5,000-acre Tanjung Langsat Industrial Complex and the Pengerang Integrated Petroleum Complex.

FGV's share price closed at RM1.48, down one sen, giving it a market capitalisation of RM5.4 billion.