Media Release: FGV Makes Greater Strides in Transformation, Finalises RM567 Million Divestment of Canada Subsidiary
KUALA LUMPUR, 3 November, 2015 Felda Global Ventures Holdings Berhad (FGV) today had completed the sale of its Canadian subsidiary, Twin Rivers Technologies Entreprises De Transformation De Graines Oléagineuses Du Québec Inc. (TRT-ETGO), to Canada’s leading grain and oilseeds marketer and handler, Viterra Inc., in line with FGV’s 5 year transformation strategy.
The sale is officially completed following the fulfilment of all the deliveries and conditions as set out in the share purchase agreement (SPA) signed on 27 August. As part of the SPA conditions, Viterra Inc. has accordingly settled the cash purchase price of CAD172.7 million amounting to RM567.1 million.
The divestment is expected to improve FGV’s profitability position in line with FGV’s long term commitment to its stakeholders and shareholders.
A post-closing adjustment will be carried out to determine the final purchase price, subject to the finalisation of both the closing net indebtedness and the closing net working capital of TRT-ETGO, which will be announced in due course.
Group President and CEO, Dato’ Mohd Emir Mavani Abdullah thanked all parties involved for successfully completing the exercise.
“In keeping with our commitment towards transforming FGV into a competitive, world-class CPO company, and as part of the Cost Optimization pillar of our transformation plan, TRT-ETGO has now ceased to be FGV’s subsidiary and its employees will continue to work under VIterra. FGV wishes them every success moving forward,” he added.