Louis Dreyfus Holding BV agreed to pay about $150 million for a stake in Felda Global Ventures Holdings Bhd. ahead of the Malaysian company’s initial public offering, said two people with knowledge of the matter.
Louis Dreyfus will hold about 2.5 percent of Felda Global after its share sale, the people said, declining to be identified as the details are private. The commodities company will buy shares at the same price as global institutional investors in the IPO, they said.
Felda Global may raise as much as $3.3 billion in Asia’s biggest initial public offering since February 2011, people with knowledge of the matter said last month. The palm oil, rubber and cocoa producer may list as early as this month or in June to take advantage of strong palm oil prices, Chairman Mohd Isa Abdul Samad told reporters on April 25.
Louis Dreyfus Chairman told French daily Les Echos in an interview that the firm may take a stake in Felda Global as part of an industrial partnership the two companies have agreed on. Sabri Ahmad, Felda’s group managing director, is traveling overseas and not immediately available for comment, a spokesman said.
Felda Global manages oil palm and some rubber estates for the Federal Land Development Authority, a Malaysian government agency. It has about 355,864 hectares (878,984 acres) of plantations in Malaysia in addition to land in Indonesia. The company also has palm oil refining businesses in China, Indonesia, Turkey and South Africa, according to a draft prospectus for the IPO.