Published: Friday June 22, 2012 MYT 12:47:00 PM
Updated: Friday June 22, 2012 MYT 1:27:32 PM
Louis Dreyfus confirms strategic partnership with Felda Global
KUALA LUMPUR: Louis Dreyfus Commodities Asia (LDCA) has confirmed it would be a strategic partner with Felda Global Ventures Holding Bhd (FGVH).
It said on Friday it had "reached final agreement" with FGVH "on the terms of their strategic partnership".
LDCA said all the necessary approvals from LDCA have been granted and that the final agreement was still subject to approval from the board of directors for FGV's subsidiaries. To recap, an MoU was signed last month for LDCA to be a strategic investor and partner to enhance the marketing and trading of FGV's palm oil business.
"In acknowledgment of the strong result of the bookbuilding and demand for the FGVH offering, LDCA may reduce its participation in the enlarged issued and paid-up share capital," it said.
Under the strategic partnership, both partners would be able to tap each other's strengths to create a major integrated player.
This would see them leveraging on FGV in its upstream and midstream activities and LDCA in its marketing and downstream capabilities.