KUALA LUMPUR (Nov 11): Felda Global Ventures Holdings Berhad (FGV), the world's largest producer of Crude Palm Oil (CPO), has delisted its newly acquired wholly owned subsidiary, Asian Plantations Limited (APL) from the London Stock Exchange's sub-market, AIM.

The move comes right after FGV completed its acquisition of APL for RM628 million or £2.20 (RM11.50) per share.
FGV had in late August made the voluntary conditional cash offer for the Singapore-incorporated APL, which turned unconditional on Oct 13 after FGV's shareholding in the unit reached 93.9%, or 43.91 million shares.

"With the delisting of APL from the AIM market yesterday, FGV is now looking forward to fully integrating APL, giving a considerable boost to FGV's business operations and growth," said FGV group president and chief executive officer Datuk Mohd Emir Mavani Abdullah in a media release today.

"The purchase of APL makes great sense from a valuation and operational standpoint. APL will increase FGV's landbank by 7%, boost CPO production, and introduce a younger crop profile. 

"FGV has set out its target of becoming a top 10 global agri-business by 2020 and deals such as APL are putting us firmly on track to reach our goal," Emir added.

APL owns 24,622 ha of oil palm plantations through its five wholly owned estates in Miri and Bintulu, Sarawak.

APL's estates are serviced by a 60-tonne-per-hour palm oil mill within the estates and are within easy reach of the deep-water port of Bintulu, where four of the big palm oil refineries in Sarawak are located.

"At an Enterprise Value of RM62,358 per planted ha, APL represents a fairly priced and value-added deal which is in line with FGV's expansion roadmap through organic and inorganic growth," said Emir.

"Apart from contributing positively to FGV in the long-term, APL's integration into FGV will give rise to cost savings from operational synergies and increase FGV's lead in sustainable palm oil production," he added.