KUALA LUMPUR: FELDA Global Ventures Holdings Bhd, (FGV) to date, has never discussed private share placements with China's biggest food trader, China National Cereals, Oils and Foodstuffs Corp (COFCO), said FGV group president and chief executive officer Datuk Zakaria Arshad.
“We’ve never discussed any stake sale in FGV with any parties, be it COFCO or Tradewinds Group,” he told reporters at the rebranding of the SAJI logo, owned by FGV’s downstream arm Delima Oil Products Sdn Bhd, here today.
However, Zakaria said FGV remains open to investor purchase of its shares.
“We’re open to COFCO or any investors buying FGV’s shares in the open market. To me, FGV shares are undervalued,” he said.
At the close of Bursa Malaysia today, FGV shares traded unchanged at RM2.05.
Also present at the SAJI re-branding event, carrying the theme “Magical Touch”, were FGV chairman Tan Sri Mohd Isa Abdul Samad and Delima Oil Products chief executive officer Datuk Wira Adam.
The re-branding saw the SAJI logo morph into a bowl to reflect the group’s culinary positioning. A yellow smile is embedded into the logo while the sun rising in the green background signifies bright prospects.
“We hope the SAJI brand remains a preferred choice among Malaysians,” said Wira.
In Malaysia, SAJI cooking oil commands a 35 per cent market share. Isa noted that the Domestic Trade, Cooperative and Consumerism Ministry only accorded FGV a production quota of 2,500 tonnes per month of palm cooking oil for the domestic market.
Zakaria said FGV is in discussion with several parties to expand and value add on its palm oil exports.
“We are talking to potential business partners who are established players with strong distribution channels in China, India, Pakistan and MENA (Middle East and North Africa).”
“In China, FGV already has a bulking facility in Dongguan. We wish to strike a partnership with COFCO on ways to expand our business there. We’re in for long term growth that is mutually beneficial,” he added.
Established in 1949, COFCO is headquartered in Beijing. Last year, the state-owned grain and food company, which posted US$30.748 billion in revenue, was ranked 121 on the Fortune Global 500.