FGV To Be Transparent With Listing & Selection Of Global Partners

From Saraswathi Muniappan LONDON, Jan 13 (Bernama) -- Felda Global Ventures Sdn Bhd (FGV), which is enroute to listing on Bursa Malaysia (Malaysia Exchange), will be transparent with the process, including the selection of its global partners, its president and chief executive, Sabri Ahmad said. FGV is the commercial arm of Felda Holdings Bhd. It holds a 49 per cent stake in Felda Holdings, while the remaining 51 per cent is with Felda Investment Co-operative (KPF). FGV owns about 80 active companies undertaking diverse activities such as multi-crop plantations, oils & fats, oleochemicals, logistics and services. It has operations in the United States, Canada, China, Australia and the Middle East. Sabri said although the listing process was complex, given the size and operations of the company, FGV would take every opportunity to explain the benefits of the listing to the stakeholders, mainly the Felda settlers. "We want to clear misconceptions related to the listing and for that, we are continuously engaged in a dialogue with the concerned parties," he told Bernama in an interview here, Thursday. Three foreign banks, Morgan Stanley, JP Morgan and Deutsche Bank, together with local banks Maybank and CIMB, have been appointed to undertake the listing exercise. The banks have been assigned to study and prepare for the initial public offering of the FGV and identify the strategic global partners. "Part of the exercise is to get global partners to expand the downstream activities," Sabri said, adding, although the suggestion on the global partners will come from the investment banks, the final decision will be made by the FGV board. "We will ensure that every decision made with regards to the listing will be in the best interest of the stakeholders," he added. Felda Group manages a 850,000 hectare plantation landbank but the listing will only affect 350,000 hectares. Sabri reiterated that the settlers would continue to own the land after the listing. Elaborating further, he said the listing among others, would enable FGV to strengthen its global position by expanding the downstream activities with global partners. "It is important for FGV to expand further into downstream activities and be involved in the whole supply chain to be more sustainable," he added. Asked about the allegation that FGV's overseas operation made losses to the tune of RM500 million (US$1=RM3.14) last year, Sabri said every company went through several phases before breaking even and becoming profitable. The operations in Boston, (US) turned profitable last year while that in Canada, would do so in 2012, he explained. -- BERNAMA