KUALA LUMPUR: Felda Global Ventures Holdings Bhd (FGV) plans to list some of its subsidiaries on the stock market “when the time is right.”
“We think FGV’s subsidiaries are qualified for initial public offerings and that includes our transport business,” said Felda Group chairman Tan Sri Mohd Isa Abdul Samad.
“It's more of a matter of timing,” he told reporters after witnessing the signing of a Memorandum of Understanding between FGV’s logistics arm Felda Transport Services Sdn Bhd (FTSSB) and MARA Liner Sdn Bhd, a wholly owned subsidiary of MARA.
The MoU aims to set up a logistics hub for the aviation industry at the Asia Aerospace City (AAC) in Subang.
FGV and MARA will undertake Multimodal Transport Operations (MTO) at the Sultan Abdul Aziz Shah Airport in Subang, Selangor.
The MARA Liner and FTSSB collaboration aims to leverage on the supply chain management capabilities of both parties including provision of ancillary support services involving engineering, hospitality, project management and IT system development.
Also present at the signing ceremony were MARA director general Datuk Ibrahim Ahmad, FELDA director general Datuk Hanapi Suhada and FGV group president & chief executive officer Datuk Zakaria Arshad.
With Malaysia aspiring to be the preferred gateway to Asia and Asean’s logistics hub, Zakaria said it is timely for FTSSB to expand its MTO business into the aviation and aerospace industrial services sector.
“Working with the MARA Group is one platform for FGV to expand its transport business higher up the value chain and beyond agricultural commodities,” said Zakaria.
The AAC, an aerospace business hub sprawled across 3.5 million sq ft in Subang, is set to offer a world-class infrastructure and befitting ecosystem for logistics players in Southeast Asia.
It was reported the AAC is expected to contribute RM1.1 billion to Malaysia's gross national income.
Back in June 2015, FGV had proposed to acquire from Rajawali Group a 37 per cent stake in PT Eagle High Plantations Tbk – the third-largest plantation group listed in Jakarta – for US$631.5 million cash and 95.44 million new FGV shares, representing 2.55 per cent of the enlarged and issued share capital of the group. FGV had also announced its plans to buy 95 per cent of a sugar project from Rajawali for US$67 million.
Asked on the progress of discussions between FGV and PT Eagle High, Isa, who is also FGV chairman replied, “It's still ongoing. We would like to conclude it as soon as possible.”
“At this moment, we're not able to reveal the price tag. Although the negotiation process is coming to a year, we still have not decided on which vehicle, whether it is FGV or Felda Investment Corp, will be involved in this deal,” Isa added.