Felda's unit issues notice to sell stake in Indonesia's Eagle High Plantation

KUALA LUMPUR, May 11 (Bernama) -- The Federal Land Development Authority's (Felda) wholly-owned company, FIC Properties Sdn Bhd (FICP), has issued a notice to PT Rajawali Capital International (RCI) and PT Rajawali Corpora (RC) to exercise its put option to reverse its investment in PT Eagle High Plantation Tbk (EHP).

FICP, in December 2016, acquired 37 per cent of the shares in EHP from RCI for the sum of US$505.4 million; in accordance with the acquisition agreement, FICP can exercise a put option for its investment in two scenarios, firstly on default by RCI / RC; and secondly at the sole and absolute discretion of FICP by the option end date, which falls on May 11, 2022.

“FICP’s exercise of the put option today under the second scenario is to fully safeguard its rights and interests. By this put option, RCI or RC must buy back the 37 per cent shares from FICP at the investment price of US$505.4 million, with interest of six per cent per annum from May 11, 2017 to the date of full payment,” the company said in a statement today.

The company emphasised that the exercise of the put option by FICP today is a prudent business decision driven by sound corporate governance principles.

“The decision also serves as one of the initiatives to establish a leaner and more sustainable business model for the Felda Group,” it added.

-- BERNAMA