Tuesday, October 14, 2014

MYpalmoil

MYpalmoil

‘FGV ending pursuit of NBPOL’

Posted: 13 Oct 2014 03:46 AM PDT

This is written by my colleague Zaidi Isham Ismail.

KUALA LUMPUR: Felda Global Ventures Holdings Bhd (FGV) will not pursue the acquisition of New Britain Palm Oil Ltd (NBPOL) after Sime Darby Bhd's fresh RM5.63 billion offer for the planter.


A reliable source said FGV will not counter offer as it will be too expensive. "No, they will not continue to bid for NBPOL as it's too pricey," the source told Business Times. 

After Sime Darby pulled out of the deal, FGV took the opportunity to bid for NBPOL but now that Sime Darby has made an about-turn, FGV will not push for it any more.

Sime Darby launched a general offer to buy all shares in NBPOL for £7.15 (or RM37.52) each last Thursday, less than two weeks after it had turned down the chance to buy Kulim (Malaysia) Bhd's 48.97 per cent stake in the London-listed NBPOL.

Sime Darby's offer is a 30 per cent premium over Kulim's previous offer of £5.50 a share to increase its stake in NBPOL.

"This acquisition is conditional upon Sime Darby obtaining 51 per cent voting rights in NBPOL," said Sime Darby president and group chief executive Tan Sri Bakke Salleh last week.

NBPOL owns about 80,000ha of oil palm plantations, more than 7,700ha of sugarcane land and a further 9,300ha of grazing pasture in Papua New Guinea. It also owns 12 mills and two refineries — one in Port Moresby and the other in Liverpool, the United Kingdom.
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