In a statement issued through FGV, LDCA said that all necessary approvals from it had been granted and the final agreement is still subject to approval from the board of directors for FGV’s subsidiaries.
A memorandum of understanding was signed last month for LDCA to be a strategic investor and partner to enhance the marketing and trading of FGV’s palm oil business.
In acknowledgment of the strong result of the bookbuilding and demand for the FGVH offering, LDCA may reduce its participation in the enlarged issued and paid-up share capital.
The strategic partnership is a “win-win” for FGV and LDCA where both partners will be able to tap each other’s strengths – FGV in its upstream and midstream activities and LDCA in its marketing and downstream capabilities – to create a major integrated player.
LDCA is a global leader in agricultural commodities, specialising in global processing, trading and merchandising, while FGV is a global agricultural and agri-commodities company which is also the world’s third largest plantation operator.