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Palm oil news until 15 June 2015

• Malaysia’s Felda Global Ventures Holdings plans to buy 37% of Indonesia’s PT Eagle High Plantations from the Rajawali Group for around US$ 680 million, a Rajawali executive said on Friday. Felda plans to buy 30 percent of Eagle High in cash and 7 percent by issuing new shares. Felda will also buy 95% of Rajawali’s sugar project for around US$ 67 million;[i]

• Thailand’s PTT said its unit had sold its 95% stake in a palm oil business in Indonesia for US$ 35 million as part of a plan by the top Thai energy company to divest non-core assets. Kalimantan Thailand Palm Pte LTD, a subsidiary of PTT’s wholly owned PTT Green Energy Pte Ltd, had sold the stake in PT Mitra Aneka Rezeki to PT Prasada Jaya Mulia and the transaction was completed on Tuesday, PTT said in a statement;[ii]

• Malaysia’s Felda Global Ventures Holdings, the world’s third-largest palm plantation operator, said it had bought 836 hectares of land with mature palm trees in east Malaysia from Golden Land Bhd for 655 million ringgit (US$ 173.92 million);[iii]

• Genting Plantations Bhd has made its maiden sukuk issuance comprising RM 1 billion (US$ 269.7 million) sukuk murabahah. The company told Bursa Malaysia that the sukuk, issued by unit Benih Restu Bhd, was part of its sukuk murabahah programme of up to RM1.5 billion in nominal value. The sukuk murabahah has a tenure of 10 years, at a profit rate of 4.62% per annum. Benih Restu will advance the proceeds from the issuance of the sukuk murabahah to Genting Plantations and/or its subsidiaries via a syariah-compliant intercompany advances. The group will thereafter apply such proceeds for general corporate purposes. Maybank Investment Bank Bhd and OCBC Al-Amin Bank Bhd are the joint principal advisers and joint lead arrangers for the sukuk murabahah programme. The joint lead managers and joint book runners for this issue are CIMB Investment Bank Bhd, Maybank Investment Bank Bhd, OCBC Al-Amin Bank Bhd and RHB Investment Bank Bhd.

[i] Thomson Reuters (2015, June 12), “Malaysia’s Felda to buy 37 pct of Eagle High from Rajawali for $680 mln”.
[ii] Thomson Reuters (2015, June 9), “Thailand’s PTT sells stake in Indonesian palm oil business for $35 mln”.
[iii] Thomson Reuters (2015, June 8), “Malaysia’s Felda Global buys palm oil land in east Malaysia for $174 mln”.

For more information contact Annemieke Beekmans.