KUALA LUMPUR (May 23): FGV Holdings Bhd (KL:FGV) said on Friday it plans to take greater control of eight subsidiaries from Koperasi Permodalan Felda Malaysia Bhd in deals worth RM229.75 million combined.

The proposed acquisitions will also allow FGV to streamline palm oil manufacturing entities and centralise ancillary services such as logistics and security, the company said in an exchange filing. Further, FGV will also be able to sharpen its research and development efforts, it noted.

Once completed by September, the deals will provide “greater operational control, faster decision-making, and alignment with the group’s strategic direction”, FGV said.

The deals come at a time of growing cash pile at FGV following a jump in profits in 2024. FGV expanded its cash and cash equivalents by 14% to RM1.73 billion last year.

The company has also previously said that it was planning to streamline non-core assets and strengthen capital structure as part of its financial management and cost optimisation efforts during an analyst briefing at the end of February.

On Friday, FGV said it will buy 49% in FGV Transport Services Sdn Bhd for RM77.90 million, the biggest out of the eight acquisitions, followed by 23% in FGV Agri Services Sdn Bhd for RM62.44 million.

FGV Transport moves liquid and general cargo, and is involved in courier, forwarding and jetty operations, while FGV Agri carries out research and development activities as well as produces a range of products, including oil palm seeds and seedlings.

FGV added it will take new bank borrowings of RM140 million and use internally generated funds to pay for the rest of the acquisition costs.