Louis Dreyfus confirms strategic partnership with Felda

Friday, June 22, 2012

LDCA sees the partnership as a win-win situation for both parties

KUALA LUMPUR: Louis Dreyfus Commodities Asia (LDCA) announced Friday that it has reached a final agreement with Felda Global Ventures Holding Bhd (FGV) on the terms of their strategic partnership.

In a statement issued through FGV, LDCA said that all necessary approvals from it had been granted but the final agreement is subject to approval from the boards of 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. -- Bernama