KUALA LUMPUR: Federal Land Development Authority (Felda) has signed a deal with Rajawali Group to acquire a significant stake in the latter's PT Eagle High Plantations Tbk (EHP), one of Indonesia's largest palm oil companies.
Under the agreement, Felda subsidiary FIC Properties Sdn Bhd (FICP) will acquire a 37 per cent stake in the Jakarta-listed EHP.
The US$505.4 million acquisition will give Felda access to more than 320,000 ha land bank in Indonesia (about 4.4 times the size of Singapore), including more than 125,000 ha of planted nucleus.
In a statement, Felda said the stake acquisition is in line with its long-term goal to become among the world’s largest palm oil groups.
"We have to continue to show growth as staying stagnant will mean that Felda will be left behind as our competitors are expanding fast in this growing industry.
"To get this growth, Felda needs to venture into new frontiers as additional plantation land in Malaysia is becoming scarce," it added.