Malaysia’s FGV drops Eagle High $680m takeover plans

Malaysia-based Felda Global Ventures Holdings Bhd (FGV) has called off the plan to acquire Indonesia’s PT Eagle High Plantations Tbk, according to a CIMB research.

The deal would have seen FGV paying $632 million in cash for a 30 per cent stake of Eagle High, and offer 95 million new FGV shares for 7 per cent more, worth around $47 million.

The CIMB research said, FGV’s move to drop the acquisition plan could act as one of the catalysts for the company’s stock.

“The planned acquisition, coupled with disappointing earnings, had pushed down its share price to as low as RM1.18, before rebounding recently. We expect the stock to re-rate when FGV officially announces that it is no longer eyeing Eagle High,” stated the research, as reported by Malaysian local media The Star. 

Just two months ago, FGV announced it would put brakes on mergers and acquisitions this year except for the proposed takeover of Eagle High, which has been in the pipeline for almost a year.

But the company received harsh criticism from one of its major shareholders, Employees Provident Fund, which said the deal was too expensive.

The Malaysia-based palm plantation operator had planned to buy 37 per cent of Eagle High for $680 million, in a deal that was set to be the biggest acquisition so far for FGV. The company then reportedly received an offer of up to 15 per cent discount, which would entail FGV paying around $578 million.

FGV shares surged following the plan abortion news. The shares opened this week’s trading by jumping 9 sen, closing at RM1.87 on Monday.

Also Read:

Indonesia Dealbook: FGV’s Eagle High deal; CDB extends $200m loan to Smartfren

Indonesia Dealbook: Inti Bangun’s $65m capex; Eagle High eyes $13.5m sales

Malaysia: Felda Global Ventures offered 15% discount on Eagle High deal, could have FIC take up a portion of stake

Singapore Reporter/s

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

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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.