Felda Global Ventures Holdings Berhad (FGV), the world’s largest producer of Crude Palm Oil (CPO), has delisted Asian Plantations Limited (APL) from the London Stock Exchange’s AIM market.
The move comes after FGV completed its purchase of APL, securing 100% of its traded shares. FGV will now working towards the timely integration of APL as a wholly-owned subsidiary, maximising the commercial opportunities and competitive advantages it offers.
With the delisting of APL from the AIM market yesterday, FGV is now looking forward to fully integrating APL, giving a considerable boost FGV’s business operations and growth
FGV’s Group President and Chief Executive Officer, Dato’ Mohd Emir Mavani Abdullah, said: “With the delisting of APL from the AIM market yesterday, FGV is now looking forward to fully integrating APL, giving a considerable boost FGV’s business operations and growth.”
“The purchase of APL makes great sense from a valuation and operational standpoint. APL will increase FGV’s landbank by 7%, it will boost CPO production, and introduce a younger crop profile. FGV has set out its target of becoming a top 10 global agri-business by 2020 and deals such as APL are putting us firmly on track to reach our goal,” said Dato’ Emir.
APL owns 24,622 hectares of oil palm plantations through its five wholly-owned estates in Miri and Bintulu, Sarawak. APL’s estates are serviced by a 60 tonne per hour palm oil mill within the estates and are within easy reach to the deep-water port of Bintulu, where four of the big palm oil refineries in Sarawak are located.
“At an Enterprise Value of RM62,358 per planted hectare, APL represents a fairly priced and value-added deal which is in line with FGV’s expansion roadmap through organic and inorganic growth. Apart from contributing positively to FGV in the long-term, APL’s integration into FGV will give rise to cost savings from operational synergies and increase FGV’s lead in sustainable palm oil production,” Dato’ Mohd Emir added.
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