23 December 2016
KUALA LUMPUR: Rajawali Group has entered into Sale and Purchase Agreement (SPA) with Malaysia’s Federal Land Development Authority (FELDA) through its wholly-owned subsidiary, FIC Properties Sdn Bhd (FICP) to sell a significant stake in Rajawali’s PT Eagle High Plantation Tbk (EHP), one of Indonesia’s largest listed palm oil companies.
Under the SPA, FICP will acquire a 37 per cent stake in the Jakarta-listed EHP for total consideration of US$505.4 million.
Further details on the proposed acquisition could not be provided at this moment as the SPA is subject to approval of the relevant authorities, both in Malaysia and Indonesia.
Satrio Tjai, Deputy Managing Director of Rajawali Group said, “This is a significant milestone in the lengthy negotiation process. We can confirm that the deal has been finalised and it is now pending approval from the relevant authorities in both countries and as such we are in no position to provide further comment.”
It is hoped that this deal, once approved will strengthen the bilateral ties between the two nations, and provide the momentum for a solid partnership between Indonesia and Malaysia in spearheading the larger agenda for the global palm oil industry through the Council of Palm Oil Producing Countries (CPOPC).