16 May 2012
Felda IPO Update: Louis Dreyfus agrees to take a minority stake in Felda IPO, no exact amount of stake committed yet
Felda Global Ventures Holdings Bhd (FGVH) has chosen Louis Dreyfus Commodities Asia Pte Ltd as its strategic investor.
FGVH also picked another international giant Vitol Group to form a joint-venture company dealing, among others, with trading and logistics.
The agreements with the two global trading houses were signed during Datuk Seri Najib Razak’s working visit here yesterday.
The Prime Minister said the collaborations will help FGVH emerge as one of the world’s biggest and most respected commodity companies.
“We want FGVH to emerge as a commodity company that is among the biggest in terms of plantation to marketing,” Najib said.
Louis Dreyfus has agreed to take a minority stake in FGVH, according to its statement issued in Paris It was conditional on a successful June stock market float for FGVH, the trading
It did not mention the amount of stake it would take up in FGVH, which is selling shares in what promises to be the world’s second largest initial public offering (IPO) this year after
Business Times reported last Wednesday that the strategic investor chosen will take up no more than 5 per cent stake in FGVH.
“This strategic partnership is a major step in Louis Dreyfus Commodities’ development in Asia and a unique opportunity to cement its role as one of the largest integrated players in palm oil activities,” Louis Dreyfus said.
The proposed transaction involves both a strategic cornerstone investment in the IPO and the creation of two joint ventures, it added.
Louis Dreyfus has its headquarters in Rotterdam, the Netherlands.
Meanwhile, FGVH and Vitol will set up a joint-venture company in Kuala Lumpur with the former as the majority shareholder.
"This MOU between FGVH and Vitol is line with FGVH's growth strategy in the non-oils sector and is one of the channels for both upstream and downstream marketing that is intended to transform FGVH into a truly global player," FGVH group president and chief executive officer Datuk Sabri Ahmad was quoted as saying in a Vitol statement.
Vitol group president and CEO Ian Taylor said: "This collaboration enhances our already significant presence in Malaysia, which is currently focused on our existing energy trading business and terminal operations."