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

Felda Global Ventures website.

Indonesia’s largest plantation group PT Eagle High Plantations Tbk is reportedly offering up to 15 per cent discount to Felda Global Ventures Holdings Bhd (FGV) for the latter’s planned purchase of a stake in the group, sources told local press.

The discount would entail FGV paying around $578 million, compared with the original price tag of $680 million, according to local business daily StarBiz.

FGV had in November 2015 sought to secure a discount in the price of its 37 per cent stake purchase in the Indonesian planter, which it had proposed to acquire from Indonesian conglomerate Rajawali Group in June.

Instead of the 37 per cent stake, FGV could be taking a much smaller stake, with the larger stake being taken by the Felda’s main investment arm, Felda Investment Corp (FIC). Under this deal structure, FIC would remove a large portion of the risk from FGV, which is impacted weaker crude palm oil prices.

The FGV-Eagle High deal was originally priced at $631.5 million cash coupled with 95.44 million new FGV shares, representing 2.55 per cent of the enlarged and issued share capital of the group. FGV also plans to buy 95 per cent of a sugar project from Rajawali for $67 million.

The proposed deal was not well received by investors because of its lofty valuation and the impact on FGV’s balance sheet.

In early December, FGV had said that there might be “a different mode of investment” in Eagle High.

Also Read:

Malaysia: Felda Group proceeds with Eagle High stake acquisition in a revised deal

Malaysia: Felda scraps earlier deal, in talks with Rajawali for different investment in Eagle High

MY’s Felda Ventures arm to buy four firms of Indonesia’s Rajawali Group including Eagle High Plantations

Felda assures investors it has capital & appetite for $680m Eagle High Plantations deal

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.

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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.