June 19, 2012 / 1:54 PM / 7 years ago

Felda, Louis Dreyfus still in talks week before IPO

KUALA LUMPUR (Reuters) - Malaysia’s Felda Global Ventures Holdings (FGVH.KL), the world’s third-largest palm oil company by acreage, said on Tuesday it was still negotiating a strategic partnership with Louis Dreyfus before making a $3.1 billion initial public offering next week.

The president of the company dismissed a report in a local financial daily that Louis Dreyfus Commodities Asia was reconsidering making an investment in Felda Global.

“Talks on strategic venture partnership between Felda Global and Louis Dreyfus are ongoing,” Sabri Ahmad said in a statement on Tuesday.

A source closed to the talks said, however, that Felda Global was still studying the terms of its proposed partnership with the one of the world’s largest commodities trading groups.

“We still need to study whether the terms listed in the partnership are fair to us,” the source told Reuters. “Whether they are taking up their strategic stake doesn’t matter as the book is already 40 times oversubscribed.”

Felda Global and Louis Dreyfus signed a memorandum of understanding in May for a partnership, which is designed to help Felda Global enhance refining and logistics.

The strategic partnership would give Louis Dreyfus a 2.5 percent stake in what promises to be the world’s second-largest initial public share offering (IPO) this year after Facebook (FB.O).

The IPO has attracted investors ranging from Hong Kong’s Value Partners (0806.HK) to Qatar Holding LLC, which would be the first time a Middle Eastern sovereign fund has acted as a cornerstone in a Malaysian IPO.

Malaysia’s IPO market has outshone those of most other Asian countries this year as a large domestic pension fund system and the dominant role of local investors have shielded it from global volatility.

Felda Global priced its IPO last week near the top of an indicative range as strong demand from domestic investors helped counter a recent global trend of listings that failed to attract enough demand.

Reporting By Yantoultra Ngui; Editing by Jane Baird

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below