FGV Annual Report 2015

172 Felda Global Ventures Holdings Berhad Annual Integrated Report 2015 Mergers and Acquisitions Mergers and Acquisitions (M&A) were explored during the year under review to push forward our GSB ambitions. Consequent to any major strategic decision, the Group followed a stringent set of guidelines, which conform to our governance and risk structures and decided through a tiered approval process. Our M&A processes are deliberate in its intricacies and details and is to ensure that the Group attains the greatest value for both Shareholders and Stakeholders alike. Chief Financial Officer’s Statement Sourcing Initial screening Full evaluation Due diligence Approval Integration plan Board of Directors Cluster Board Investment Committee (IC) Group CEO/ Cluster Head Central M&A function Business Units International BD External advisors Approves Memorandum of Understanding (MOU) Approves investment Approves investment IC endorses investment IC authorizes due diligence (>RM2mil) CEO endorses evaluation, authorizes due diligence (<=RM2mil) and signs Memorandum of Business Exploration CEO endorses IC paper Risk Mnagement & Internal Audit signs off due diligence CEO approves initial screening and signs Non-Disclosure Agreement (NDA) Initial screening: • Yes/No criteria • Strategic fit • Financial fit • Operational fit Full analysis: • Strategic fit • Financial fit • Operational fit For JointVentures • Assess partner Due diligence: • Risk • Financial • Legal • Operational Integration plan: • 100-day plan • Post-merger • Operations • Finance, HR Supports BU team in sourcing deals Business units International Business Development Risk management Risk management Legal verification Business Unit support Financial audit An MOU is only required for material investments Note: Decision by Cluster CEO or Group CEO will be based on DAL, decision by Cluster Board or main Board of Directors will be based on DAL End End End End End YES YES YES YES NO NO NO NO NO