KUALA LUMPUR: Felda Global Ventures Holdings Bhd (FGV) coming quarter results is expected to be positive, as it is seeing improving yields at the estates, said group president and chief executive officer (CEO) Datuk Zakaria Arshad.
“FGV posted losses in the first quarter ended March 2016. Since then, preliminary numbers from the estates show positive results. We're quite confident of getting back into the black going forward,” he said.
Zakaria was speaking to reporters after presenting RM462,000 in tithe collected from FGV to around 400 less privileged folks here, today.
“Although FGV is currently facing uncertain commodity pricing, we remain committed to our social responsibility towards our community,” Zakaria said.
Also present at the tithe presentation ceremony was FGV chairman Tan Sri Mohd Isa Abdul Samad, who is also Felda Group chairman.
Back in June 2015, FGV, which is 20 per cent-owned by FELDA — announced plans to purchase 30 per cent in Eagle High for US$632 million cash and a further 7 per cent stake via an issue of 95 million new FGV shares worth US$48 million, which gave the deal a total valuation of US$680 million.
Earlier this week, it was reported that FELDA Investment Corp Sdn Bhd (FIC) — a wholly-owned unit of the Federal Land Development Authority (FELDA) — is believed to be looking to secure a US$505 million loan from Credit Suisse Group to facilitate its proposed acquisition of a 37 per cent stake in PT Eagle High Plantations Tbk (Eagle High).
It is understood FIC had initially been in advanced negotiations with Bank of America for the funding. But after a promising start, the talks fell through, leading to Credit Suisse stepping in as a facilitator for the Malaysian government-guaranteed loan.
Asked if FIC is currently finalising loan arrangements with foreign banks to seal the deal with Eagle High, Isa declined to comment.
“I cannot say yes or no. I cannot deny or confirm on the question you ask on the PT Eagle High Plantations Tbk deal. I will not comment on this. Like I said before, we will make an announcement when the time is right,” Isa said.
It was also reported that FELDA seemed to have chosen FIC as the vehicle to purchase a stake in Eagle High from the Rajawali group, which holds 66 per cent in the Indonesian company.
The Rajawali Group is the flagship vehicle of Peter Sondakh, an Indonesian business tycoon. Sondakh is ranked sixth richest in Indonesia by Forbes with an estimated net worth of US$2.3 billion.
To another query if FGV is no longer involved in Eagle High deal, Isa replied, “we still have not decided on which vehicle, whether it is FGV or Felda Investment Corp. When the time is right, we will make the announcement.”