Louis Dreyfus finalises pact with FGV

KUALA LUMPUR: Louis Dreyfus Commodities Asia has finalised the deal to be a strategic partner and investor for Felda Global Ventures Holding Bhd (FGV).

However, the French trader said its equity participation in FGV’s initial public offering (IPO) would be lower than what they had agreed on previously. This was “in acknowledgement of the strong result of the bookbuilding and demand for FGV offering”, Louis Dreyfus announced in a statement issued through FGV yesterday.

The announcement came amid reports that the 2.5 per cent FGV stake that was previously offered to Louis Dreyfus had been offered and snapped up by other investors. Louis Dreyfus would be taking a 0.5 per cent stake instead, according to a Reuters report quoting unidentified sources.

FGV is making a US$3.1 billion (RM9.89 billion) IPO next week.

Louis Dreyfus yesterday noted that it had reached a final agreement with its Malaysian partner on the terms of their strategic partnership. It added that while all other necessary approvals had been granted, the final agreement is still subject to approval from FGV subsidiaries’ board of directors.

Last month, FGV and Louis Dreyfus signed a memorandum of understanding for the latter to be a strategic investor and partner to enhance the marketing and trading of FGV’s palm oil business.

Louis Dreyfus is a global leader in agricultural commodities, specialising in global processing, trading and merchandising, while FGV is a global agricultural company as well as the world’s third largest oil palm plantation company.

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