FGV completes divestment of Canadian unit

by **Cals** Tue 03 Nov 2015, 17:59

FGV completes divestment of Canadian unit

By Gho Chee Yuan / theedgemarkets.com | November 3, 2015 : 4:03 PM MYT

KUALA LUMPUR (Nov 3): [size=16]Felda Global Ventures Holdings Bhd (FGV) ([You must be registered and logged in to see this image.] Valuation: 0.80, Fundamental: 1.15) has completed the divestment of its non-core oilseeds crushing and refining plant in Quebac, Canada, to Viterra Inc today for CAD172.7 million (RM567.1 million).

In a filing with Bursa Malaysia today, FGV said Viterra had settled the cash purchase price of CAD172.7 million (RM567.1 million) to the company today, in accordance with the terms of the sales and purchase agreement (SPA).

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.

Today, the CPO player said 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.

“Thereafter, the purchaser or the seller will settle the difference between the cash purchase price and the final purchase price accordingly,” it said, adding that it will announce the final purchase price in due course.

Following the completion of the proposed disposal, FGV said TRT-ETGO is no longer a subsidiary of the group.

The divestment came after FGV obtained the green light to do so from the Canada and United States authorities on Oct 19.

The divestment entails the disposal of 298,070 common shares, representing the entire issued and paid-up share capital for a cash consideration of approximately CAD 190 million (RM608.2 million), its filing then stated.

Shares in FGV gained four sen or 2.25% to trade at RM1.82 at 3.29pm today, for a market capitalisation of RM6.57 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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