Felda to use unlisted unit in bid to buy Rajawali stake: sources

Kuala Lumpur

MALAYSIAN state-owned conglomerate Felda will use an unlisted unit to buy into Indonesian tycoon Peter Sondakh's debt-burdened Rajawali Group, sources familiar with the matter said, seeking to avoid heavy investor criticism that scuttled an attempted deal last year.

Plans for Felda to buy 37 per cent of palm oil plantation firm PT Eagle High Plantations Tbk collapsed last year after politicians and investors blasted a US$680 million deal as an expensive favour for Mr Sondakh, who has long-standing ties with Malaysian Prime Minister Najib Razak. Both Mr Najib and Mr Sondakh have said that the deal was commercially driven.