KUALA LUMPUR – The takeover of FGV Holdings Bhd by the Federal Land Development Authority (Felda) is a crucial step in the latter’s recovery plan, which has been approved by the government for settlers’ benefit.
In a statement issued yesterday to allay concerns expressed by certain quarters over the sale offer of FGV shares issued to shareholders, Felda said the takeover does not involve the personal interests of any party, and is being made on practicable terms.
“A virtual briefing was also conducted for Settlers’ Consultative Committee members, Malaysian Felda Youth Council, Kami Anak Felda, the Felda settlement and regional management, staff, and retirees on the significance of this effort.”
It said the support of Felda staff and settlers is a major factor in the success of the endeavour.
The agency said the offer price of RM1.30 per share is reasonable, as it is the same price that was “freely and professionally” negotiated with Retirement Fund Inc (KWAP) and Urusharta Jamaah Sdn Bhd, exceeds the market price, and involves a 15% premium on FGV’s net asset value of RM1.13.
The offer price is fair as it is 15% higher than FGV’s RM1.13 net asset value as of September 30, 2020, and 49% higher than its RM0.87 net tangible assets as of the same date, said Felda.
In a statement, Maybank Investment Bank Bhd (Maybank IB) said the closing time and date for shareholders to accept the unconditional mandatory takeover offer has been extended to 5pm on February 16, from 5pm on February 2.
Maybank IB is the principal adviser to Felda for the offer document.
On December 8 last year, Felda proposed the takeover offer after acquiring 222.48 million FGV shares (6.1% stake) held by KWAP and 283.71 million units (7.78% stake) held by Urusharta Jamaah for RM658 million.
As of January 29, the agency and persons acting in concert held a 68.76% stake in FGV. – Bernama, January 30, 2021
