JAKARTA – The long awaited deal for transfer of stakes of PT Eagle High Plantations Tbk (BWPT) to Felda Global Ventures Bhd has hit a serious road block. A deal in which the Malaysian crude palm oil giant was supposed to purchase a 30% stake worth US$680 million in Eagle High with an additional 7% grab through new share issuance, has come tumbling down as it received serious criticisms.
Once again, talks have resumed, perhaps to renegotiate the terms at cheaper price. According to Reuters, a Felda associate told media, "Current market conditions and developments in the palm oil sector have made it necessary to mutually review the existing mode of investment in order to maximize the benefits for all parties involved.”
What was potentially Felda’s most aggressive move to increase their land bank through Rajawali’s Eagle High Plantations, many of Felda’s shareholders have found themselves relieved, as most believed the price was way too high.
The initial deal had Eagle’s share premium move from 54% to 82%. Even though Eagle’s shares fluctuated around Rp440 per share, Felda had agreed to purchase each share from Rp678 to Rp800. (CH)