Asia Palm Oil Magazine Jul - Sept 2021

Page 12

12

ORGANIZATION NEWS

FGV Inks RM175mil Deal to Buy MSM Perlis from 51 Per CentOwned MSM

F

GV Holdings Bhd, via subsidiary FGV Integrated Farming Holdings Sdn Bhd, has inked a share sales agreement with MSM Malaysia Holdings Bhd to buy MSM Perlis Sdn Bhd for RM175 million. The agreement is a continuation of the binding term sheet signed between MSM and FGV Integrated on April 30 this year. MSM, which is 51 percent-owned by FGV, will obtain shareholders’ approval via an extraordinary general meeting by the third quarter of 2021. The transaction was expected to be completed before the end of the year,” FGV and MSM said in a joint statement. MSM group chief executive officer Syed Feizal Syed Mohammad said the disposal of MSM Perlis was part of the group’s blueprint in monetizing non-core assets to strengthen and improve its financial performance. Syed Feizal said an extraordinary income with an estimated gain of RM91.6 million would be realized as part of the disposal. “It is also to enhance our operational front, particularly on utilization factor and yield improvement in MSM Sugar Refinery (Johor) Sdn Bhd (MSM Johor). “Aside from the disposal, the accelerated planned rectification works at MSM Johor will also support MSM’s target to reach a minimum utilization rate of 50 per cent by the third quarter of 2021,” he said. Recently, MSM Johor completed its boiler rectification work and resumed its sugar production and packing. The temporary closure was to allow planned rectification works and targeting higher operational reliability and stocks availability. FGV group officer in charge and divisional director of logistic and support businesses sector Azman Ahmad said it was looking forward to developing and expanding the FGV Chuping Agro Valley project to realize FGV Integrated’s strategic initiatives. “This is in line with the government’s proposition to bolster the domestic economic sector and provide employment opportunities in efforts to reduce the impact of the pandemic,” said Azman. ASIA PALM OIL MAGAZINE | Jul-Sept 2021

FGV Holdings Bhd inks a share sales agreement with MSM Malaysia Holdings Bhd to buy MSM Perlis Sdn Bhd for RM175 million.

To date, more than 50 employees and field workers have been hired for the project. In addition, a total area of 60 hectares has been allocated for the agropreneurs programme under the contract farming scheme for the MD2 Pineapple project. The first batch of agropreneurs’ recruitment is expected to be in July 2021. “FGV Integrated has already commenced the groundwork of 1,200 hectares of MD2 pineapple plantation where we target to complete the development by the year 2025,” said Azman. Since the cessation of sugar cane plantation in 2011, MSM Perlis managed agricultural land with rubber, oil palm and mango plantations. However, due to unsustainable performance associated with high operating costs of maintaining plantation activities, MSM Perlis ceased its plantation sector activities on June 30, 2019. MSM Perlis’ sugar refinery operations were discontinued a year later following MSM’s capacity rationalization to consolidate the production in the new refinery, MSM Johor. These decisions were mandated by both boards of directors of FGV and MSM in the companies’ best interest to optimize the potential of the assets and strengthen the capital structure. As public-listed companies, stakeholders will continue to be engaged, and both companies will make timely disclosures. Guided by its business plans and strategies, FGV and MSM will remain resilient in sustaining the turnaround journey and building on emerging opportunities. Source: www.nst.com.my


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Articles inside

Sabah Makes Strides towards Sustainable Palm Oil Production

5min
pages 40-41

Indonesian Oil Palm Plantations Urged to Tighten COVID-19 Curbs As Infections Climb

1min
pages 38-39

India Palm Oil Imports from Thailand Spike As Price Pressures Moun

2min
page 37

More Than 750 ISPO Certificates Issued for

3min
pages 32-33

India’s Palm Oil Imports Seen to Slow

2min
page 36

Indonesia Yet to Decide on Whether to

1min
pages 34-35

Potential Ban on Palm Oil, Glove Products by Canada is Unfounded

2min
pages 30-31

Palm Oil Output at Risk as Lockdown Worsens Labor Shortage

2min
pages 26-27

MPIC Names MPOB, MRB Chairman

1min
pages 24-25

Collaboration Is Key to Scaling up Training for Oil Palm Smallholders in Indonesia

4min
pages 28-29

Implementation of B20 Biodiesel Mandate in Sabah, Peninsular Malaysia Delayed Again

1min
pages 22-23

IOI Corp Notes Forced Labor Claims Against Planter in US Letter to Activist

1min
page 17

Indonesian Authority Revokes Plantation Licence of TDM’s Land in West Kalimantan

1min
page 16

FGV Inks RM175mil Deal to Buy MSM Perlis from 51 Per Cent-Owned MSM

2min
pages 12-13

Strong CPO Prices Boost Boustead

3min
pages 10-11

Bourse to Launch New Palm Oil Contract

2min
pages 20-21

PM Urges Egypt to Increase Palm Oil Imports from Malaysia

2min
pages 18-19

KLK Set to Take Over IJM Plantations for RM1.5bil

1min
pages 8-9

Techbond’s New Upstream Polymerization Plant in Vietnam Commenced Operation

2min
pages 14-15
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