|Asian Plant Di
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Real-Time news about Asian Plant Di (London Stock Exchange): 0 recent articles
|here and there: bizarre world
all those retail punters chasing dreams on two bit companies when there are solid companies like PALM right under their nose.
if they are being offered 50000rm per hectare....any take over will be north of £4
i would prefer the company to hang in there for a couple of years and grow production, revenue and profit....get the share price back into the £4/£5 range and then enjoy the attention of some suitors|
|here and there: hxxp://www.thestar.com.my/Business/Business-News/2014/03/01/FGV-eyes-Asian-Plantations-Malaysias-plantation-giant-in-expansion-mode/
FGV eyes Asian Plantations
BY HANIM ADNAN
An Asian Plantations palm oil mill.
FELDA Global Ventures Holdings Bhd (FGV) is hot on the trail of another round of landbank acquisitions this year.
The cash-rich plantation conglomerate is believed to have set its sights on Asian Plantations Ltd (APL), a Singapore-based plantation company that is listed on the Alternative Investment Market (AIM) of the London Stock Exchange.
Sources close to the deal tell StarBizWeek that discussion are still ongoing between the two parties.
"FGV is going to be busy with its international road show, which will kick-off next week. There is a possibility that the APL deal can be struck in the next few weeks," adds the sources.
It is still unclear whether FGV is looking to buy up the entire stake in APL or some of its maturing plantation assets. It is believed that the price being negotiated works out to be about RM50,000 per hectare.
As at press time, both FGV Group president and CEO Mohd Emir Mavani Abdullah and APL joint CEO and executive director Graeme Brown are unavailable to comment on the deal.
Last year, FGV undertook several major mergers and acquisitions (M&As), including the RM1.2bil takeover of Sabah-based plantation company Pontian United Plantations Bhd, the RM2.2bil purchase of the remaining 51% stake in its associate company, Felda Holdings Bhd, RM35mil for a 100-tonne-per-hour biodiesel plant in Pahang and RM44.2mil to buy a 95% stake in two plantation companies with 21,037ha of oil palm estates in West Kalimantan.
So, what makes APL such an attractive acquisition target for FGV?
While APL is perceived as a foreign-based group but in reality, it has a 100% Malaysian profile with its subsidiaries involved in oil palm plantations in Sarawak.
The company was listed on AIM in 2009 with 4,795ha of landbank. Its shares traded at 75 pence with a market capitalisation of about US$30mil.
Now, the group has expanded with a total 20,770ha comprising five estates within Miri and Bintulu region, which are mostly revenue-generating .
Its share price as at Feb 27 is 220 pence with a market capitalisation of £102.5mil (RM561.7mil).
Some analysts feel that APL has potential to grow in value given the bullish outlook in crude palm oil (CPO) prices, which is forecast to reach RM3,000 per tonne by first half of this year.
Most important is that all the APL estates hold the agricultural title certificates, which are the highest form of legal title for plantation companies in East Malaysia under the Land Code.
These estates are serviced by the company's 120-tonne per hour palm oil mill, which is position near the deep water port of Bintulu, where four of the big palm oil refineries in Sarawak are located.
It is worth to note that APL's 29.5% major shareholder, Keresa Plantations Sdn Bhd, is owned by Tan Sri Leonard Linggi Anak Jugah who is a prominent figure in Sarawak business, legal and political circles.
APL's independent director is also a well known Sarawakian - Tan Sri Amar Leo Moggie - who is currently chairman of Tenaga Nasional Bhd.
Keresa Plantations claims to be the only Roundtable on Sustainable Palm Oil (RSPO) certified planter in Sarawak that produces certified sustainable palm oil for the export market.
Hence, Keresa has been thorough in ensuring that APL estates are on "mineral soil" as it has a policy that "the group does not and will not develop estates on peat soil."
According to a Singapore-based plantation analyst, APL is a hot target among large plantation companies because of it is very much an asset play with good prospects given the company's young palm tree oil age profile which are mostly under 15 years old.
Furthermore, the company's business strategy has always been to acquire "under-priced, properly zoned agricultural land in Malaysia, which can be developed into high-quality mature palm oil estates."
The analyst says APL's priority is to sell the land once it has matured and starts producing good fresh fruit bunches (FFB).
Normally, greenfield plantation in Sarawak is cheaper at about RM5,000 to RM7,000 per hectare given "the peat soil" condition and overlapping land title issues when compared to their peers in Peninsular Malaysia or Sabah.
But in APL's case, the analyst says most of its estates are already developed and sitting on mineral soil, thus the land valuation could possibly be higher in the RM50,000 per ha or more range.|
Asian Plant Di share price data is direct from the London Stock Exchange