FGV gets nod for Canada unit's RM608.2m divestment

by **Cals** Tue 20 Oct 2015, 00:14

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[size=28]FGV gets nod for Canada unit's RM608.2m divestment

By Gho Chee Yuan / theedgemarkets.com | October 19, 2015 : 8:38 PM MYT

KUALA LUMPUR (Oct 19): Felda Global Ventures Holdings Bhd (FGV) ([You must be registered and logged in to see this image.] Valuation: 0.80, Fundamental: 1.15) has obtained the green light from the Canadian and United States authorities for the divestment of its non-core oilseeds crushing and refining plant in Quebac, Canada, to Viterra Inc, for RM608.2 million.

The world's largest producer of crude palm oil (CPO) told Bursa Malaysia today that the Competition Act (Canada) and the US' Hart-Scott-Rodino Antitrust Improvements Act approvals have been obtained for the disposal.

FGV had on Aug 23 announced it was disposing the oilseeds crushing and refining plant, Twin Rivers Technologies Entreprises De Transformation De Graines Oleagineuses Du Quebec Inc. (TRT-ETGO), in Quebec, Canada.

The CPO player said the divestment is in line with its transformation plan of revenue enhancement, cost-optimisation and operational excellence, in order to transform for the longer term benefit of its stakeholders and shareholders.

The exercise entails the disposal of 298,070 common shares, representing the entire issued share capital for CA$190 million (RM608.2 million) cash.

"Upon the completion of the proposed disposal, TRT-ETGO will cease to be a subsidiary of FGV," it added.

FGV's group president and CEO, Datuk Mohd Emir Mavani Abdullah, was earlier reported as saying the exercise will help to streamline its downstream focus, and hence, strengthen the group's competitive position.

Shares in FGV gained eight sen or 4.6% to close at its four-month high of RM1.82 today, for a market capitalisation of RM6.68 billion.

(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)
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