Felda Global: Strategic venture talks with Louis Dreyfus ongoing

Paris-based Louis Dreyfus was reported to be reconsidering its plan to buy a strategic 2.5 per cent stake under FGV’s listing.
KUALA LUMPUR: Felda Global Ventures Holdings Bhd (FGV) is still talking with Louis Dreyfus Commodities Asia on a strategic partnership.

“Talks on strategic venture partnership between FGV and Louis Dreyfus are ongoing,” FGV group president Datuk Sabri Ahmad said
in a brief statement yesterday.

Sabri was responding to a report by a financial daily, quoting sources, that Paris-based Louis Dreyfus was reconsidering its plan to buy a strategic 2.5 per cent stake under FGV’s listing.

It was reported that this was due to the high fees imposed and involvement of many cornerstone investors in the exercise.

The report also said that Louis Dreyfus had initially been invited to take up a 4.9 per cent stake before being cut to 2.5 per cent.

Louis Dreyfus is involved in agriculture, oil, energy and commodities, as well as specialises in global processing, trading, merchandising and international shipping.

Sabri said the partnership is a win-win for both FGV and Louis Dreyfus as both parties will be able to tap each other’s strengths – FGV in its upstream and midstream activities while
Louis Dreyfus in the downstream capabilities.

A memorandum of understanding was signed last month for Louis Dreyfus to be a strategic investor and partner to enhance the
refining and logistics of FGV’s palm oil business,
subsequently take up interest in the world’s third largest palm oil operator.

FGV’s RM10 billion listing will be the world’s second largest after Facebook Inc’s US$16 billion (RM63.2 billion) offering.

FGV’s institutional offering of 1.92 billion shares was oversubscribed by 45 times, while the public portion of 72.96 million shares was oversubscribed by 6.75 times.