Felda Global Ventures Holdings Bhd‘s (FGV) wholly-owned subsidiary Felda Global Ventures Kalimantan Sdn Bhd (FGV Kalimantan) is expected to complete the equity acquisition of four Indonesian companies by November 30.
FGV Kalimantan had entered into a heads of agreement with PT Rajawali Capital International (Rajawali Capital) and PT Rajawali Corpora (Rajawali Corpora) to purchase equities in four companies owned by the two entities, on June 12, 2015.
The agriculture group told Bursa Malaysia on Friday that under the deal with Rajawali Capital, FGV Kalimantan will own 11.66 billion shares, representing 37 per cent equity interest in PT Eagle High Plantations Tbk (previously known as PT BW Plantations Tbk), an Indonesian public listed company, from Rajawali Capital.
Separately, the deal between FGV Kalimantan and Rajawali Corpora will see the former owning 2,375 shares, representing 95 per cent equity interest in PT Cendrawasih Jaya Mandiri; 2,375 shares, representing 95 per cent equity interest in PT Karya Bumi Papua; and 14 shares, representing 93.3 per cent equity interest in PT Rizki Kemilau Berjaya.
The entities involved in the deal are still in the midst of negotiating the terms of the definitive documents, the group said.
In its Bursa Malaysia disclosure dated June 12, 2015, FGV Kalimantan said: “The partnership with a strong Indonesian partner in Rajawali Corpora will provide access to a formidable platform in Southeast Asia’s largest market, with significant revenue and cross-selling opportunities through Rajawali Corpora’s extensive network and credentials.”