KUALA LUMPUR: FEDERAL Land Development Authority (Felda) is believed to have concluded the stake purchase in PT Eagle High Plantations Tbk for around US$500 million (RM2.2 billion).
Eagle High, which is listed on the Jakarta Stock Exchange, is an oil palm plantation unit of Rajawali Group, the flagship vehicle of Indonesian billionaire Peter Sondakh.
“Felda is believed to have concluded the stake purchase in PT Eagle High and the US$500 million deal is expected to be announced in the next few days,” a source told Business Times.
Yesterday, Eagle High closed higher at 274 rupiah (nine sen).
Eagle High has a total landbank of 425,000ha, with 67 per cent in Kalimantan and the rest spread over Papua New Guinea (nine per cent), Sulawesi (19 per cent) and Sumatra (five per cent).
There are 152,000ha planted with 24 per cent immature palms and 76 per cent mature palms, with the average tree age at eight years old.
In July last year, Felda Global Ventures Holdings Bhd (FGV) told Bursa Malaysia it signed a heads of agreement with Rajawali Group to acquire a 37 per cent stake in Eagle High for US$680 million in cash and stocks.
FGV was to pay US$632 million in cash for a 30 per cent stake and issue 95 million new FGV shares for the other seven per cent stake. FGV was also buying a 95 per cent stake in Rajawali Group’s sugar project for RM249 million.
Five months later, FGV reportedly said there could be “a possible different mode of investments into Eagle High, with participation of Felda Investment Corp (FIC) taking on a larger portion of the stake”.
In February, FGV said the Eagle High stake purchase would involve Felda, spearheaded by Tan Sri Mohd Isa Abdul Samad, who is chairman of both Felda and FGV.
Two months ago, FGV said the Eagle High stake purchase was no longer in its radar and, therefore, Felda remained the key reference in the transaction.