FGVH'S unit terminates JV partnership with Bunge

by **Cals** Sun 30 Jun 2013, 02:02

FGVH'S unit terminates JV partnership with Bunge
Business & Markets 2013
Written by Bernama
Friday, 28 June 2013 21:02

KUALA LUMPUR (June 28): Twin Rivers Technologies Entreprises de Transformation de Graines Oléagineuses du Québec Inc (TRT ETGO) will operate commercial operation of the business as well as the crushing and processing operations from Sept 1, 2013.

TRT ETGO, a unit of Felda Global Ventures Holdings Bhd (FGVH), will also revert to recognising revenue from the sale of soyabean and canola products and costs of sales from the purchase of soyabeans and canola seeds instead of tolling fees.

In an announcement to Bursa Malaysia, FGVH said this followed the termination of joint venture (JV) partnership between TRT ETGO and Bunge Ventures Canada LP on various agreements including the tolling agreement.

It said the termination of the JV and the change in TRT ETGO's business and operating model was not expected to have any material impact on FGVH for financial year ending Dec 31, 2013.

"However a further accounting assessment will be made on the final effective dissolution date of Nov 30, 2013 where, if applicable, a further announcement will be made," the world's third largest palm oil company said.

FGVH said the business of the JV would terminate on Aug 31, 2013 with the intent of dissolving the JV entity by Nov 30, 2013.

Any remaining customer contracts, supplier contracts and inventory of the JV will be acquired by the partners at their market value as determined in accordance with industry practice, it said. -- BERNAMA