Felda secures Malaysian govt financing for Eagle High stake purchase

Visual from Felda Portal

Malaysia’s Federal Land Development Authority (Felda) has secured government financing to fund its $505.4 million purchase of a minority stake in Indonesian palm oil firm PT Eagle High Plantations Tbk, state news agency Bernama reported.

In a controversial move, state-owned Felda said last week it would buy a 37 percent stake in Eagle High, paying a 95 percent premium its last closing share price at the time.

The deal has under mounting criticism this week, with opposition lawmakers and industry analysts calling the deal overpriced. Some critics have also said Felda would have to raise money to fund the acquisition.

Bernama quoted Muzzammil Mohd Nor, Felda’s deputy director-general, as saying that government financing was secured but there were no details on the amount of financing in the report.

Muzzammil also denied that the deal was overpriced, saying no other plantations of Eagle High’s size were available for sale at the valuation paid and the deal was strategically too important to pass up.

“If we don’t do this deal, we will just be on the sidelines, forcing to watch our competitors grow by leaps and bounds in this highly lucrative sector,” he was quoted as saying in an interview.

Felda did not immediately reply to a Reuters request for comment.

Reuters

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.