FGV completes sale of oilseeds plant in Canada

04 Nov 2015 / 05:36 H.

    PETALING JAYA: Felda Global Ventures Holdings Bhd (FGV) yesterday completed the sale of its oilseed-processing plant in Quebec, Canada, to Viterra Inc for RM567.1 million.
    In a statement yesterday, FGV said the sale was officially completed following the fulfillment of all the deliveries and conditions as set out in the share purchase agreement (SPA) signed on Aug 27.
    As part of the SPA conditions, Viterra has accordingly settled the cash purchase price of RM567.1 million.
    FGV had on Aug 23 announced it was disposing of the oilseeds crushing and refining plant, Twin Rivers Technologies Enterprises De Transformation De Graines Oleagineuses Du Quebec Inc (TRT), in line with it’s five year transformation strategy.
    “The divestment is expected to improve FGV’s profitability position in line with FGV’s long-term commitment to its stakeholders and shareholders,” it said.
    The deal will see FGV dispose of 298,070 common shares, representing the entire issued and paid-up share capital, which, upon the completion, will see TRT ceasing to be a subsidiary of FGV.
    The sale is part of Felda’s plan to enhance revenues and cut costs and become one of the world’s biggest agribusiness companies.
    “In keeping with our commitment towards transforming FGV into a competitive, world-class CPO company, and as part of the cost optimisation pillar of our transformation plan, TRT has now ceased to be FGV’s subsidiary and its employees will continue to work under Viterra. FGV wishes them every success moving forward,” FGV group president and CEO Datuk Mohd Emir Mavani Abdullah said.
    FGV said a post-closing adjustment will be carried out to determine the final purchase price, subject to the finalisation of both the closing net indebtedness and the closing net working capital of TRT, which will be announced in due course.


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