Panorama Sentrawisata (Panorama Group) announced today that the agreement to divest 30.1 per cent shares of its unit Panorama Tours Indonesia to Japan’s JTB Corporation has officially been met. Meanwhile, Malaysia’s Federal Land Development Authority (Felda) has reportedly begun the process of transferring shares of Eagle High Plantation to FIC Properties.
Panorama Group said that it ended up offloading 30.1 per cent of Panorama Tours instead of 40 per cent as was previously announced, but did not give further details. The company received Rp 370 billion ($27.8 million) instead of Rp 491 billion ($36.9 million) for the stake sale.
The fresh capital will be used for expansion, working capital, and to boost revenue to Rp 6 trillion, targeting a 30 per cent growth.
After divestment, Panorama Group continues to control 60 per cent of Panorama Tours.
Headquartered in Tokyo, Panorama’s newest partner, JTB Corporation, is one of Japan’s largest travel companies, which now operates 520 offices in 101 cities spread across 37 countries. It booked annual revenues of $13.4 billion in 2015. JTB’s shareholders include Japan Travel Bureau Foundation, Hokkaido Railway Company, The Bank of Tokyo – Mitsubishi UFJ, Mizuho Corporate Bank, Sumitomo Mitsui Banking Corporation, Japan Airlines and All Nippon Airways.
Malaysia’s Felda has begun the process of transferring shares of Eagle High Plantations, Indonesian local media Kontan reported.
The deal is expected to close by the end of the month.
According to Malaysia’s local news, the purchase into one of Indonesia’s largest palm oil companies from the Rajawali Group was Putrajaya’s initiative to strengthen Malaysia’s palm oil industry.
“In facilitating this Eagle High deal, the government has channelled loans of up to RM2.5 billion to FIC Properties,” Shahrir said in the report.
Rajawali Group obtained Indonesian authority’s approval for the deal back in February.
Felda Global Ventures (FGV), the private corporate entity of Felda, 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 plan was scrapped after sharp criticism from one of its major shareholders, Employees Provident Fund, which said that the deal was too expensive. The deal was revived after FGV received an offer of approximately 15 per cent discount.