AllianceDBS Research foresees that the latest acquisition by Felda Global Ventures Holdings Bhd may not be immediately earnings accretive.

The expectation was due to ongoing weather patterns and low crude palm oil price issues plaguing planters in the region, it said in a research note today.

FGV, through its unit, Pontian United Plantations, yesterday proposed to acquire a piece of land and four subsidiaries from Golden Land Bhd for RM655 million, expected to be completed by fourth quarter this year.

“We maintain our earnings forecast pending confirmation of the acquisition, with a ‘hold’ rating and RM1.90 target price,” AllianceDBS said.

As at 10.12am, FGV’s share price on Bursa Malaysia slipped one sen to RM1.90 with 340,000 shares changing hands.

- Bernama