Rcently, industry analysts have been questioning Felda Global Ventures’ (FGV) US$680 million offer to the Rajawali Group for PT Eagle High Plantations (EHP), claiming that the offer exceeds market value. However, FGV counters that the offer is consistent with the group’s strategy to become a leading global palm oil plantation company.
FGV views the acquisition as key to its expansion plan, as it would give the group access to Asean’s largest single market, and a solid foothold in the key region. The group also points out that the deal implies a value per planted hectare of US$17,400 – lower than the per hectare value of the recent Sime Darby Bhd acquisition of New Britain Palm Oil (NBPO) of US$25,900 and the US$23,500 per hectare value of IOI Corp Bhd’s acquisition of Unico-Desa Plantation.
Lynda Kiernan is Editor with HighQuest Group Media and of the Oilseed & Grain News. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at firstname.lastname@example.org.