Felda Global Ventures shares up as it drops acquisition deal

Kuala Lumpur

INVESTORS cheered Felda Global Ventures' termination of a deal to acquire Indonesia's PT Eagle High Plantations, pushing its shares up 4.5 per cent to RM1.85 on Tuesday, although analysts are of the view that the stock is significantly overvalued.

After nearly half a year, FGV concluded that a proposal to buy 37 per cent of PT Eagle from the Rajawali Group was not feasible - at least in its original form. Both parties are now considering "a possible different mode of investment" but are no longer bound by a deadline, the planter said in a brief filing to the stock exchange on Monday.