Sondakh Calls Eagle High Sale to FGV a Win-win Transaction

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  • Peter F. Sondakh. TEMPO/Santirta M.

    Peter F. Sondakh. TEMPO/Santirta M.

    TEMPO.CO, Jakarta – Peter Sondakh, chairman and CEO of the Rajawali Corporation, asserted that the sale of PT Eagle High Platantation's share to Malaysian firm Felda Global Ventures (FGV) is a win-win transaction.

    "This transaction is mutually beneficial to both parties," he said.

    For FGV, this transaction opens access to Indonesia's vast markets and extensive plantations. "As for Rajawali, the sale provides us with a strategic partner that has the experience and qualified expertise in the field of plantation."

    FGV is one of the world's top five major players in the palm oil industry. The firm has a number of refineries and business units in many countries including Canada, USA, Turkey, Spain and France. In Asia, the company has businesses in homeland Malaysia, Pakistan, Myanmar, Thailand, and Indonesia.

    Rajawali Corp. signed an agreement to sell 37 percent of its stake in PT Eagle High Plantation Tbk. to FGV last week. The stake is priced at US$632 million, paid in cash and stock swaps.

    "This is the largest transaction by an oil palm plantation in Indonesia," Darjoto Setyawan, managing director of Rajawali Corp. told Tempo on Monday, June 15.

    The signing ceremony was held in Jakarta on Friday, June 12, 2015.

    "This is a mutually beneficial synergy," said Darjoto. He hopes that the deal will help Indonesia's downstream palm oil industry to become the global center of oleochemical production. Additionally, the deal is expected to strengthen trade between Indonesia and Malaysia.

    WAHYU MURYADI