PPB confirms 'not in discussion' with FGV on MSM

TheEdge Wed, Sep 04, 2019 03:09pm - 4 years View Original


KUALA LUMPUR (Sept 4): PPB Group Bhd confirmed today it is not in talks with FGV Holdings Bhd following FGV's announcement in July this year that it was exploring strategic alliances in the sugar industry via subsidiary MSM Malaysia Holdings Bhd. 

Plantation company FGV, which owns a 51% stake in MSM, said then "discussions are still at a preliminary stage" as FGV and MSM explore all avenues to successfully enter regional and international markets.

Today, diversified group PPB managing director Lim Soon Huat said at a press and analyst briefing here : “FGV has said that they are looking for strategic investors or partners, but I can confirm that PPB is not in discussion with FGV.”

PPB's website indicates that the group's diversified businesses include flour milling, property development and cinema operations. PPB also owns an 18.5% equity interest in Wilmar International Ltd, PPB's website said.

The Edge Financial Daily, quoting a source, reported on July 26 this year that FGV is in talks — including with international players in the sugar industry — to dispose of part of its 51% strategic stake in refined sugar producer MSM.

It was reported that there are at least four companies that are eyeing the block of shares.

"One of them, the source said, is JAG Capital Sdn Bhd, which is an investment holding company linked to the family of former second finance minister Datuk Seri Johari Abdul Ghani. The others are Wilmar, the Singapore-based agribusiness firm owned by Kuok Group; an unnamed Indonesian company and another unnamed Chinese outfit.

"Following the disposal, FGV and the buyer of the shares will likely hold approximately the same shareholding in MSM. Principally, MSM operates the sugar business of FGV," The Edge Financial Daily reported.

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Related Stocks

FGV 1.380
JAG 0.310
MSM 3.250
PPB 15.380

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