PETALING JAYA: The turnaround plan for FGV Holdings Bhd has yet to bear fruit with its share price likely to stay range-bound.

According to CGSCIMB, the market is also keeping a close eye on the decision by its 33% shareholder Felda on the status of the land lease agreement (LLA).

“The positives are FGV’s new management team plans to cut the workforce by 10%, reduce costs by RM150mil and divest non-core and non-performing assets for proceeds of RM350mil,” said the research unit.

CGSCIMB, which has a “hold” call on FGV, pointed out that the key risk is that Felda may consider taking back the plantation land it has leased out to FGV.

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