KUALA LUMPUR: Malaysia's state-owned palm oil plantation company Felda on Tuesday said unit had agreed to buy a 13.88pc stake in FGV Holdings for a total 658 million ringgit ($161.67 million) in cash.

Maybank Investment Bank, in a statement on behalf of Felda said the firm also proposed a mandatory takeover offer for the remaining FGV shares not already owned by Felda after completion of the equity deal.

Felda expects the proposed acquisition to contribute positively to future earnings and cash flow, it said.