[KUALA LUMPUR] Malaysia's Felda Global Ventures Holdings Bhd, the world's No.3 palm plantation operator, has put on hold a planned US$680 million purchase in Indonesia after shareholders criticised the deal as too expensive and market conditions deteriorated, sources directly involved with the matter said.
Felda unveiled a plan in June to buy 30 per cent of Indonesia's PT Eagle High Plantations in cash and an additional 7 per cent by issuing new shares - its biggest acquisition so far to expand its landbank.
But it has had to extend deadlines for the deal and sources said a sharp drop in the ringgit and depressed palm oil prices meant the deal was not acceptable to Felda. The sources declined to be identified as the news is not public.
A spokeswoman from Felda declined to comment.
The sources said the two companies will announce on Monday that they plan to restructure the deal, but will give no details on how and when this is likely to be done.
Felda's shares have fallen about 8 per cent since initial reports of the company's deal with privately-owned Rajawali Group, one of Indonesia's largest investment companies, emerged.