FGV says not pursuing Syed Mokhtar’s offer

KUALA LUMPUR (March 8): FGV Holdings Bhd said it will not be pursuing a proposal by Perspective Lane (M) Sdn Bhd, a company controlled by tycoon Tan Sri Syed Mokhtar Albulkhari, to inject its plantation assets in exchanges for shares.

The group said its directors have decided not to pursue the proposal any further, in view of the takeover offer by the Federal Land Development Authority (Felda) to acquire the remaining stake in FGV.

Last October, FGV had received an expression of interest from Perspective Lane “to participate in FGV via an injection of plantation assets into FGV, for share consideration (after which) Perspective Lane would potentially become the single largest shareholder of FGV”.

Perspective Lane wholly owns Tradewinds Plantation Bhd, which has about 160,000ha of land bank, out of which 87% is planted. According to its website, Tradewinds Plantation has 132,940ha of oil palm plantation, 6,940ha of rubber plantation and 11 palm oil mills.

In December last year, Felda made an unconditional mandatory takeover offer through Maybank Investment Bank Bhd, to acquire all remaining shares in FGV (excluding treasury shares) not already held by Felda and persons acting in concert, for RM1.30 per share.

In a separate announcement, Felda said it has increased its stake in FGV to 73.88%, after acquiring more shares in the open market today.

Felda previously announced that it has extended its offer period for one last time to March 15.

Shares of FGV settled one sen or 0.77% higher at RM1.31 today, valuing the group at RM4.78 billion.

Source: The Edge