[ad_1]
KUALA LUMPUR (December 22): The Federal Land Development Authority (Felda) is considering the privatization of FGV Holdings Bhd following its unconditional takeover offer for the latter’s shares.
In a filing with the exchange, Felda said it does not intend to maintain FGV’s listed status on the main Bursa Malaysia market.
However, the delisting of FGV will only take place if Felda and its associates are able to acquire a total of 90% or more of the shares of FGV in the tender offer at RM1.30 per share.
On December 8, Felda announced that it planned to launch the takeover offer if it succeeded in acquiring a 6.1% stake held by Retirement Fund Inc (KWAP) and a 7.78% stake held by Urusharta Jamaah Sdn Bhd for RM658 million in cash.
The acquisitions would raise Felda’s stake to 50.49%, creating a requirement for the agency to extend the unconditional mandatory acquisition offer.
The recent development comes after all the fuss about the cabinet giving Felda its approval to terminate its land lease agreement (LLA) with FGV and how it wanted to take over the oil palm mills from the listed unit.
According to the LLA, FGV is supposed to receive compensation as a result of the termination, although the group previously maintained that it had not yet received any notice of the termination from Felda.
FGV’s share price closed unchanged at RM1.18, giving a market capitalization of RM4.3 billion.
[ad_2]
