FGV Holdings Bhd, a Malaysian-based global agricultural and agri-commodities company has announced that its subsidiary FWQ Enterprises (Private) Ltd has entered into a memorandum of understanding (MOU) with Johor Port Bhd (JPB).
According to the Malaysian media reports, the company will explore the potential acquisition of a 25% stake in Fauji Akbar Portia Marine Terminals (FAPMT), an operating dry bulk terminal in Port Qasim, Pakistan.
FGV said that FAPMT had extended an invitation to select a potential investor of up to 25% equity for its future expansion plan, with works comprising land reclamation for additional storage, installation of new unloaders, warehouse extension, installation of new silos and jetty extension.
The MOU will remain valid for two years, with the company to make another announcement on any definitive agreement signed between the parties.
“JPB and FWQ intend to join hands to form an unincorporated joint venture for the sole purpose of preparation and submission of an expression of interest (EOI) as required to be submitted to FAPMT and/or Fauji Foundation, (as the case may be) as set out under the teaser document,” FGV said.
FGV owns a 65% stake in FWQ, while the balance 35% is held by Westbury Group, a company based in Pakistan involved in trading, refining, manufacturing, shipping, storage, warehousing, insurance, and industrial services in the country.
FGV and Westbury Group have existing joint ventures in Pakistan, involved in the business of oil refinery, storage, and jetty operation, and was previously awarded the sole and exclusive right to set up a liquid cargo terminal in Port Qasim by the Pakistan Federal Government in December 2004.
Meanwhile, JPB, wholly-owned by MMC Corp Bhd, runs the Johor Port which has been in operation for more than four decades and was the catalyst for the development of the Pasir Gudang Industrial Area, as well as spearheading the new 5,000-acre Tanjung Langsat Industrial Complex and the Pengerang Integrated Petroleum Complex.
FGV further stated that the members are committed to submit the EOI and shall work together and cooperate in good faith and do all acts as may be necessary or required to fulfill the reasonable requirements of FAPMT.