FOR OIL PALM PLANTATION COMPANY IN MALAYSIA

Client

Corporate Organisation wholly-owned by the Minister of Finance Inc.

Products & Services

• Corporate Restructuring
• Business Review
• Operational & Financial Assessment

Description of Project

Client

The client is a Corporate Organisation wholly-owned by the Minister of Finance Inc. It  is responsible for developing rural areas by opening up opportunities for rural communities to participate in economic activities to generate income.

Background

The Client started venturing into fertilizer business and research activities since 1998. Currently the Client has 3 main subsidiaries that is involved in the fertiliser business. Individually, some of their fertiliser products overlap with each other. This creates stiff competition between each other in an already very stiff competitive environment where outside bidding might also involve bigger multinational fertiliser companies.

Challenges & Expectations

Prior to 2018, these 3 companies rely heavily of the Client for sales of their fertiliser. However due to group rationalisation and cost saving exercise done in 2019, all companies were negatively impacted. Hence, the Client is looking into merging the companies to create one larger organisation that would be more financially viable and cost effective in the long run.

Our Role on the Project

Scope of Services

The team was tasked to perform the following exercise during the engagement:

• To review the businesses of the fertiliser companies and the competitive landscape
• To review and analyse the accounts and any other relevant reports such as valuation and business operations for all FB’s fertiliser companies in relation to the proposed restructuring
• To propose new consolidated structure of FELCRA Fertiliser Co taking into account issues such as operational practicality, marketing and products
• To give recommendations and advice on legal issues, taxation and operations in relations to the proposed restructuring

Solutions/Outcomes Delivered

The team has conducted a high level operational and financial assessment on existing business to provide an overview on the competitive landscape. Several restructuring options and structures were being explored, then formulate the restructuring proposal with insights on valuation and operational, legal & tax for further evaluation by Client.