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Felda’s sugar business worth RM1bil - Najib Razak

Felda’s sugar business worth RM1bil

By Wednesday April 13th, 2011 No Comments

PETALING JAYA: In what may be the largest initial public offering (IPO) year-to-date, Felda Global Ventures Holdings Sdn Bhd will list its sugar business, Malayan Sugar Manufacturing Co Bhd (MSM), on the Main Market of Bursa Malaysia by July.

According to reports, the IPO has been estimated to be worth up to RM1bil.

Felda Global, a unit of the Federal Land Development Authority (Felda), was formed in mid-2009 as the commercial arm of Felda Holdings Bhd, and also owns a 49% stake in the group while the balance is held by the Felda Investment Co-operative.

MSM and land for sugar cane plantations were acquired by Felda Holdings from Kuok Brothers-controlled PPB Group Bhd last year for RM1.25bil. Kuok Brothers is the investment vehicle of Asia’s one-time sugar king, Tan Sri Robert Kuok, who used to control 10% of the world’s sugar supply. The deal made Felda the main producer of sugar in Malaysia, in control of 70% of the local market.

The announcement of the listing was made by Prime Minister Datuk Seri Najib Razak in his speech at the opening ceremony of Invest Malaysia 2011 yesterday.

“The listing will enhance Felda’s leading position in the sugar industry, providing the group with an opportunity to gain recognition in the capital market and allowing it to realise its investment while retaining control of its assets,” he said.

The listing will be the first ever for Felda Holdings, which was reported to have plans to list some of its businesses starting with the sugar operations this year.

Source : The Star

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