MSM surges 14.5% on report FGV in talks to sell stake

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KUALA LUMPUR (July 26): Shares in MSM Malaysia Holdings Bhd surged as much as 14.5% this morning after it was revealed that its 51%-shareholder FGV Holdings Bhd has been in talks to sell part of its stake to international sugar players.

At 10.47am, the counter was up 13 sen or 11.11% at RM1.30, making it one of the top 10 gainers in Bursa Malaysia this morning. MSM saw 832,100 shares traded so far.

Earlier today, The Edge Financial Daily reported that at least four companies have expressed their interest to buy the MSM stake from FGV, citing a source.

One of them, the source said, is JAG Capital Sdn Bhd, which is an investment holding company linked to the family of former second finance minister Datuk Seri Johari Abdul Ghani.

The others are Wilmar International Ltd, the Singapore-based agribusiness firm owned by Kuok Group; an unnamed Indonesian company; and another unnamed Chinese outfit.

FGV acknowledged that it is exploring potential collaborations with international players in the sugar industry, both in the upstream and downstream sectors.

"These potential collaborations include strategic alliances. Discussions are still at a preliminary stage and both FGV and MSM will make the relevant announcements at the appropriate time," it said.

See also: FGV in talks to sell MSM stake