FGV rises 0.56% after saying it will decide on Eagle High’s price by Nov

by **Cals** Thu 19 Nov 2015, 17:16

FGV rises 0.56% after saying it will decide on Eagle High’s price by Nov

By Danial Idraki / theedgemarkets.com | November 19, 2015 : 12:20 PM MYT

KUALA LUMPUR (Nov 19): Shares in [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) rose 0.56% or 1 sen, after The Edge Financial Daily reported today that the group will decide on the final price of its proposed acquisition of Indonesia-based PT Eagle High Plantations Tbk, once it receives the due diligence report by end of this month.

At noon, its share price stood at RM1.78, with 927,500 shares having exchanged hands.

It had earlier reached a mid-morning high of RM1.80, before shedding some gain.

The report stated that the group will negotiate the acquisition price based on the findings of the report, and will take into account the depreciation of the ringgit against the US dollar, as well as the level of crude palm oil (CPO) price.

On June 12, FGV (fundamental: 1.15; valuation: 0.8) announced that it had entered into a heads of agreement to acquire a 37% stake in Eagle High from PR Rajawali Capital International for US$680 million, of which US$632 million will be paid in cash for a 30% stake, while the remaining 7% stake will be settled via an issue of 95 million new FGV shares.

The total acquisition price of US$747 million translated into RM2.8 billion at the time the deal was announced, and the proposed deal has come under scrutiny for its structure and the high premium that FGV will be paying for a non-controlling stake in Eagle High.

“In any asset that you buy, the final price will be dependent on the due diligence report, and we should expect it by end of this month. We will make an announcement,” The Edge Financial Daily quoted group president and chief executive officer (CEO) Datuk Mohd Emir Mavani Abdullah as saying.

(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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