Felda To Take FGV Private Following Unconditional Takeover Offer

The Federal Land Development Authority (Felda) is eyeing to take FGV Holdings Bhd private after its unconditional takeover offer for the latter’s shares.

In a filing with the bourse, Felda said it does not intend to maintain the listing status of FGV on the Main Market of Bursa Malaysia.

However, the delisting of FGV will only go through if Felda and its associates are able to acquire in aggregate 90% or more of FGV’s shares in the takeover offer at RM1.30 per share.

On Dec 8, Felda announced that it was planning to launch the takeover offer if it succeeded in acquiring a 6.1% stake held by Retirement Fund Inc (KWAP) and a 7.78% interest held by Urusharta Jamaah Sdn Bhd for RM658 million cash.

The acquisitions would raise Felda’s stake to 50.49%, thus triggering the requirement for the agency to extend the unconditional mandatory takeover offer.

The recent development comes after all the fuss about the Cabinet granting its approval to Felda to terminate its land lease agreement (LLA) with FGV and how it wanted to take over the listed unit’s oil palm mills.

Under the LLA, FGV is supposed to get compensation as a result of the termination, although the group previously maintained that it still had not received any notice of the termination from Felda.

FGV’s share price closed unchanged at RM1.18, giving a market capitalisation of RM4.3 billion.

Source: The Edge Market

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