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KUALA LUMPUR (Dec 23): FGV Holdings Bhd topped Bursa Malaysia’s most active list after its controlling shareholder, the Federal Land Development Authority (FELDA), decided to take over the publicly traded entity through an offering Mandatory acquisition at RM1.30 per share.
At 10.30am, FGV was trading at RM1.28, a 10 sen gain, with 91.86 million shares changed hands.
FELDA said in a filing with Bursa Malaysia yesterday that it had completed the proposed share purchase announced on December 8. Its stake in FGV had increased to 50.49% from 36.61% previously. Therefore, the conditional mandatory takeover offer, which was also unveiled on December 8, is now an unconditional offer.
FELDA stated in the latest announcement that it does not intend to maintain the listing status of FGV, which was listed in 2012 at an initial public offering (IPO) price of RM4.55. Prior to this, FELDA announced that it wanted to terminate the land lease agreement with FGV and acquire its palm oil mills, but was silent on its plan to privatize the plantation company at the time when it announced the purchase of Kumpulan Wang shares. Persaraan (Diperbadankan) (KWAP) and Urusharta Jamaah Sdn Bhd to consolidate their participation.
At the offer price of RM1.30 per share, FGV is valued at around RM4.75 billion based on its issued share capital of around 3.65 billion.
“News of mandatory acquisition of FGV at RM1.30 / share may see some trading activity,” Rakuten Trade Sdn Bhd analysts wrote in a note today.
Yesterday, FGV said in a Bursa filing that, in accordance with the Malaysian Securities Commission (SC) rules on mandatory acquisitions, mergers and acquisitions, the FGV board will appoint an independent advisor to provide comments, opinions, information and recommendations on the offer.
The notice stated that FELDA is obliged to extend the takeover bid after acquiring a total of 506.19 million shares, representing a stake of approximately 13.88% in FGV for RM658.05 million from both KWAP and Uruusharta. Jamaah.
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