KUALA LUMPUR (Jan 20): Felda Global Ventures Holdings Bhd (FGV) said today its targeted acquisition of PT Eagle High Plantations TBK is still in negotiations and expects to conclude discussions within the next one to two months, according to FGV chairman Tan Sri Mohd Isa Samad.
"The latest update is that we are still looking for a new business model. Negotiations are still ongoing and hopefully it will be settled in another one or two months. It will definitely be concluded by March," he told reporters today.
On Nov 30, 2015, FGV had said it was in discussion with PT Rajawali Capital International for "a possible different mode of investment in PT Eagle High Plantations", following months of delay in the finalisation of the deal between the two parties.
"In this regard, the parties agreed that the deadline to enter into the conditional sale and purchase agreements will no longer be applicable. Any development of the above will be announced in due course," the state-controlled plantation group had told Bursa Malaysia then.
In a media statement, FGV had said the current market conditions and developments in the palm oil sector have made it necessary to mutually review the existing mode of investment in order to maximise the benefits for all parties involved.
On the same day, Bloomberg had reported, quoting FGV chief executive officer Mohd Emir Mavani Abdullah, that the group planned to start new discussions to buy a stake in Eagle High with Rajawali in the first quarter after aborting the initial plan.
"Indonesia is still very important to us, compared with other countries," he had said, explaining the bearish crude palm oil prices and the weakening ringgit have forced the group to renegotiate the deal.
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