PETALING JAYA: FGV Holdings Bhd

has reaffirmed its commitment as a joint venture (JV) partner in the FGV IFFCO Group.

This follows the news that the United Arab Emirates-based IFFCO Group, FGV’s JV partner, is planning to restructure at least US$1.5bil of debt.

The FGV IFFCO Group (formerly known as Felda IFFCO) markets a wide range of vegetable oil products, including cooking oils, fats and derivatives, while also providing logistics solutions for sales and distribution.

“The JV companies operate independently with minimal exposure to IFFCO Group’s corporate exercise. All transactions are conducted under market-driven commercial terms, with FGV representatives on the boards and management to ensure sound governance and prudent management,” FGV said in a statement yesterday.

The FGV IFFCO Group is a JV between FGV and IFFCO which involves three FGV companies: FGV IFFCO Sdn Bhd, an oils and fats refinery in Port Klang; FGV IFFCO Trading Sdn Bhd, a trading subsidiary in Kuala Lumpur; and FGV IFFCO France SA a trading subsidiary in France.

“To date, the FGV IFFCO Group remains resilient and continues to deliver value to shareholders. For the year-to-date period, the FGV IFFCO Group recorded a profit of RM49mil, reflecting stable operations despite broader market headwinds,” it noted.

According to Bloomberg, in an earlier report last Friday it quoted sources as saying IFFCO Group’s creditors are working with PwC on the possible restructuring, while IFFCO brought in Alvarez and Marsal as its adviser.

FGV said it continues to work closely with the IFFCO Group and receives regular updates on the exercise.

“This reflects the strength of the partnership, with both parties maintaining close engagement to safeguard business continuity. Market confidence remains intact as IFFCO’s businesses and brands continue to demonstrate stability,” it said.

It is said that IFFCO Group recently told its lenders it would stop principal payments.

The IFFCO Group operates brands including London Dairy ice creams, Tiffany biscuits and the LDC Kitchen & Coffee chain.

The report further added that these deliberations are still at an early stage, and a restructuring deal may ultimately not materialise.

“Our JV companies remain resilient and unaffected by this exercise. Supported by strong fundamentals and sound governance, they continue to deliver value to stakeholders and maintain the confidence of the market. As a shareholder, FGV gives its full commitment to supporting the FGV IFFCO Group and will ensure that the JV is managed with the highest professionalism to deliver sustainable value to shareholders,” said FGV’s group chief executive officer Fakhrunniam Othman.

IFFCO was established in 1975 and operates in about 50 countries, with a portfolio spanning food, packaging, chemicals and logistics.

FGV also said its own financial standing remains steady, underscored by its AA- credit rating, reflecting the confidence that financial institutions have in its stability and outlook.

“Above all, FGV wishes to reassure stakeholders that its JV with IFFCO remains firm amid the IFFCO Group’s ongoing exercise,” it said.