LONDON (Jan 12): Felda Global Ventures Sdn Bhd (FGV) should ideally have only one strategic global partner, although talks are ongoing with several parties, sources said.
A source said the partner would bring in the know-how and capabilities in the downstream activities.
Currently, FGV, which is en route for listing on Bursa Malaysia, is reliant on upstream segment of the palm oil industry.
"So, the purpose of the strategic partner is to grow the business across the value chain from being too reliant on upstream to mid-stream and downstream," he told Bernama.
The source, who declined to be named, said one of the key criteria to have a strategic partner was that it must have the capability that would complement FGV.
He, however, declined to comment when asked if the global partner could be one that FGV is already working with in its overseas ventures.
On the company's website, big names such as Procter & Gamble, Behn Meyer & Co and Taiko Clay Chemicals are listed as its joint-venture partners.
"There is still room to further build FGV," he said.
He said the listing of the commercial arm of Felda Holdings Bhd would not only benefit the company and its stakeholders but also the Malaysian capital market.
"It is also branding for Malaysia," he said.
The source said said one should not be confused with big funds such as the Employees Provident Fund (EPF) and strategic global partner.
"Investment from funds like EPF will give strength to FGV's initial public offering. They take up the financial role, while the global partner is the one to help grow the business," he said.
Generally, investors would invest in a company for one to two years, but strategic partners were for the long term, he said.
"Market investors typically take one-two years' view in this kind of environment (due to current financial market uncertainties), previously it would have been one-three years," he said.
FGV is the commercial arm of Felda Holdings Bhd.
It holds a 49 per cent stake in Felda Holdings and Felda Investment Cooperative 51 per cent.
FGV owns about 80 active companies undertaking diverse activities such as mutli-crop PLANTATION []s, oils and fats, oleochemicals, logistics and services.
It has operations in US, Canada, China, Australia and the Middle East. - Bernama
A source said the partner would bring in the know-how and capabilities in the downstream activities.
Currently, FGV, which is en route for listing on Bursa Malaysia, is reliant on upstream segment of the palm oil industry.
"So, the purpose of the strategic partner is to grow the business across the value chain from being too reliant on upstream to mid-stream and downstream," he told Bernama.
The source, who declined to be named, said one of the key criteria to have a strategic partner was that it must have the capability that would complement FGV.
He, however, declined to comment when asked if the global partner could be one that FGV is already working with in its overseas ventures.
On the company's website, big names such as Procter & Gamble, Behn Meyer & Co and Taiko Clay Chemicals are listed as its joint-venture partners.
"There is still room to further build FGV," he said.
He said the listing of the commercial arm of Felda Holdings Bhd would not only benefit the company and its stakeholders but also the Malaysian capital market.
"It is also branding for Malaysia," he said.
The source said said one should not be confused with big funds such as the Employees Provident Fund (EPF) and strategic global partner.
"Investment from funds like EPF will give strength to FGV's initial public offering. They take up the financial role, while the global partner is the one to help grow the business," he said.
Generally, investors would invest in a company for one to two years, but strategic partners were for the long term, he said.
"Market investors typically take one-two years' view in this kind of environment (due to current financial market uncertainties), previously it would have been one-three years," he said.
FGV is the commercial arm of Felda Holdings Bhd.
It holds a 49 per cent stake in Felda Holdings and Felda Investment Cooperative 51 per cent.
FGV owns about 80 active companies undertaking diverse activities such as mutli-crop PLANTATION []s, oils and fats, oleochemicals, logistics and services.
It has operations in US, Canada, China, Australia and the Middle East. - Bernama
