PPB says not in talks with FGV on MSM acquisition

KUALA LUMPUR, Sept 4 — PPB Group Bhd today confirmed it is not in talks with FGV Holdings Bhd on acquisition of a stake in MSM Malaysia Holdings Bhd.

“FGV is seeking an investor or partner. I can confirm that PPB is not in discussions with FGV.

“I think it’s more appropriate for you to check with FGV, who they are talking to,” PPB Group managing director Lim Soon Hua told a media and analyst briefing here today.

It was reported that FGV is in discussions to dispose of its 51 per cent stake in MSM with a few local and international parties including PPB Group’s 18.5 per cent associate Wilmar International Ltd, which is owned by Kuok Group.

In addition, FGV is also looking for potential collaboration with international players both in the upstream and downstream sectors of the sugar industry.

Lim said for further expansion, the group has committed to investing RM794 million over four years, with RM395 million allocated to the grains and agribusiness segment for the construction of a wheat flour and grain mill in Vietnam and investment in Chinese flour mills, among others.

About RM379 million is set aside for the film exhibition and distribution segment for opening 10 new cinemas, including one in the new market of Cambodia, and for upgrading existing cinemas.

Meanwhile, RM11 million is allocated for the consumer products segment for the construction of a new production facility and purchase of equipment.

Besides Cambodia, the group also aims to open cinemas in Myanmar and expand its presence in Vietnam.

Overall, Lim said PPB Group’s main businesses are expected to perform satisfactorily, with Wilmar continuing to contribute substantially to the overall profitability of the group.

The grains and agribusiness segment, which contributes 68 per cent to its revenue, is set to capitalise on its established market position and perform satisfactorily, while the consumer products segment is expected to remain stable for the rest of the year.

Meanwhile, the film exhibition and distribution segment is likely to be supported by the introduction of new technology, opening of new cinemas and strong movie releases.

The environmental engineering and utilities segment will continue to focus on replenishing its order book, which stood at RM676 million as of July 31, 2019, and exploring new projects.

The property segment will continue to execute existing projects and improve the yield of its existing investment properties.

Lim said its Megah Rise project in Petaling Jaya has recorded sales of 49 per cent as of Aug 31, 2019. — Bernama

Related Articles