KUALA LUMPURL Felda Global Ventures Holdings Bhd (FGV) has hinted at profit turnaround in the second quarter and beyond, fuelled by improved yields at its estates.
FGV posted RM65.54 million net loss in the first quarter to March 31 as its crude palm oil production was severely affected by the El Nino.
Group president and chief executive officer Datuk Zakaria Arshad is bullish about its recovery.
According to him, initial numbers from its estates had boosted the group’s confidence of returning to the black “going forward”.
“FGV posted losses in the first quarter ended March this year. Since then, preliminary numbers from the estates showed positive results.
“We’re quite confident of getting back into the black going forward,” said Zakaria after presenting RM462,000 in tithe to some 400 less privileged folks, here, yesterday.
Meanwhile, Federal Land Development Authority (Felda) chairman Tan Sri Mohd Isa Samad said decision has yet been made on which Felda company will be used to buy a 37 per cent stake in PT Eagle High Plantations Tbk.
“We still have not decided on which vehicle, whether it is FGV or Felda Investment Corp. When the time is right, we will make the announcement,” he said.
FGV, which is 20 per cent-owned by Felda, announced last June plans to buy 30 per cent of Eagle High for US$632 million (RM2.59 billion) cash and a further seven per cent stake via an issue of 95 million new FGV shares worth US$48 million, giving the deal a total valuation of US$680 million.
Earlier this week, wholly-owned FIC was reportedly looking to secure a US$505 million loan from Credit Suisse Group to facilitate the Eagle High acquisition.
It is understood that FIC had initially been in advanced negotiations with Bank of America for the funding.
But after a promising start, the talks fell through, leading to Credit Suisse stepping in as a facilitator for the Malaysian government-guaranteed loan.
Isa declined to comment on whether FIC was finalising loan arrangements with foreign banks to seal the deal with Eagle High’s owner Rajawali Group.
The Rajawali Group is the flagship vehicle of Peter Sondakh, an Indonesian business tycoon.
Sondakh is ranked sixth richest in Indonesia by Forbes with an estimated net worth of US$2.3 billion.