<article>Malaysia-based <a style="color: #000080;" href="http://www.feldaglobal.com/" target="_blank">Felda Global Ventures Holdings Bhd (FGV)</a> has called off the plan to acquire Indonesia’s <a style="color: #000080;" href="http://www.bwplantation.com/" target="_blank">PT Eagle High Plantations Tbk</a>, according to a <a style="color: #000080;" href="https://www.cimbclicks.com.my/" target="_blank">CIMB</a> research.</article>

Malaysia-based <a style="color: #000080;" href="http://www.feldaglobal.com/" target="_blank">Felda Global Ventures Holdings Bhd (FGV)</a> has called off the plan to acquire Indonesia’s <a style="color: #000080;" href="http://www.bwplantation.com/" target="_blank">PT Eagle High Plantations Tbk</a>, according to a <a style="color: #000080;" href="https://www.cimbclicks.com.my/" target="_blank">CIMB</a> 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, <a style="color: #000080;" href="http://www.epfindia.com/" target="_blank">Employees Provident Fund</a>, 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.
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<a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/dealbook-inti-bangun-sets-65m-capex-eagle-plantation-eyes-13-5m-sales-44622/" target="_blank">Indonesia Dealbook: Inti Bangun’s $65m capex; Eagle High eyes $13.5m sales</a>
<a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/malaysia-felda-global-ventures-offered-15-discount-on-eagle-high-deal-could-have-fic-take-up-a-portion-of-stake-29484/" target="_blank">Malaysia: Felda Global Ventures offered 15% discount on Eagle High deal, could have FIC take up a portion of stake</a>

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

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

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