FGV terminates agreement for Vitamin E plant

PETALING JAYA: Felda Global Ventures Holdings Bhd's (FGV) plan to develop a vitamin E plant in Kuantan, Pahang has been aborted.

The plantation giant told Bursa Malaysia that its wholly owned subsidiary Felda Global Ventures Downstream Sdn Bhd (FGVD) had terminated its joint venture and shareholders' agreement with Lipid Venture Sdn Bhd (LVSB) after four years.

The deal was inked on Nov 13, 2013 between the two parties to undertake the development, construction, fabrication and operation of a plant to be located in Kuantan, Pahang to produce tocotrienol (vitamin E) from refined bleached palm oil.

FGV, however, stressed that the termination will not have any financial impact on the group and its subsidiaries

Through the joint venture, FGVD and LVSB were to collaborate and leverage on each other's strength, where LVSB with its expertise in technology and know-how and FGVD access to raw materials for tocotrienol extraction.

This was initially envisaged to enable FGV to tap into the unrealised value in its refineries and create a new revenue stream for the shareholders as well as opening up the opportunity to tap into the vitamin E market in nutraceutical business.

FGV's share price was unchanged at RM1.87, with some 9.22 million shares changing hands.