PETALING JAYA, FGV Holdings Bhd has reiterated its full commitment to the FGV IFFCO Group joint venture, despite reports that its partner, the United Arab Emirates-based IFFCO Group, is considering a debt restructuring exercise worth at least US$1.5 billion.
The FGV IFFCO Group — formerly known as Felda IFFCO — manufactures and markets a wide range of vegetable oil products, including cooking oils, fats, and derivatives, while also providing logistics services to support sales and distribution. “The JV companies operate independently with minimal exposure to IFFCO Group’s corporate restructuring exercise. All transactions are conducted under market-based commercial terms, with FGV representatives on the boards and management to ensure prudent governance,” FGV said in a statement yesterday.
FGV said The JV companies operate independently with minimal exposure to IFFCO Group’s corporate exercise.
The joint venture involves three FGV subsidiaries: FGV IFFCO Sdn Bhd, an oils and fats refinery in Port Klang; FGV IFFCO Trading Sdn Bhd, a trading unit in Kuala Lumpur; and FGV IFFCO France SA, a trading subsidiary in France. For the year-to-date period, the FGV IFFCO Group recorded a profit of RM49 million, underscoring the venture’s resilience and stable performance amid challenging market conditions.
According to Bloomberg, IFFCO’s creditors are working with PwC on a potential restructuring, with Alvarez & Marsal acting as adviser. The report also noted that deliberations remain at an early stage and may not necessarily result in a deal.
FGV stressed that the joint venture remains financially sound, resilient, and unaffected by 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 brands and businesses continue to demonstrate stability,” it added.
FGV group chief executive officer Fakhrunniam Othman said: “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 market confidence. As a shareholder, FGV is fully committed to ensuring that the FGV IFFCO Group is managed with professionalism to deliver sustainable value.”
Founded in 1975, IFFCO operates across about 50 countries with a diverse portfolio spanning food, packaging, chemicals, and logistics. Its brands include London Dairy ice cream, Tiffany biscuits, and the LDC Kitchen & Coffee chain.
FGV also reaffirmed its own financial strength, highlighting its AA- credit rating as a reflection of institutional confidence in the group’s stability and outlook. “Above all, FGV wishes to reassure stakeholders that its joint venture with IFFCO remains solid, despite the ongoing developments,” the company said.
