Felda makes RM1.30 per share cash offer for FGV shares

KUALA LUMPUR – The Federal Land Development Authority (Felda) has issued an offer document in relation to its unconditional mandatory take-over offer for all remaining ordinary shares in FGV Holdings Bhd which it does not own, except treasury shares.

In a Bursa Malaysia filing today, Felda said the cash offer of RM1.30 per share would be open for acceptances until 5pm on February  2, 2021, unless extended or revised with an announcement to be made by Maybank Investment Bank Bhd (Maybank IB) two days prior to the closing date.

Maybank IB is the principal adviser to Felda for the said offer document.

Felda said an independent advice circular would be issued latest by January 22, 2021.

“Felda does not intend to maintain the listing status of FGV on the Main Market of Bursa Securities,” it said.

It also noted that the offer would provide an opportunity for Felda to further increase its shareholding in FGV and further consolidate its control in FGV.

“In turn, this would place Felda in a better position to align the future strategy and business direction of FGV, primarily its plantation sector, to fully realise the benefits anticipated from the exercise,” it said.

After the completion of the offer, Felda said it intends to continue the existing businesses of FGV in oil palm plantation, related downstream activities, including sugar refining, manufacturing and logistics.

It also does not have any plans to liquidate any company within the FGV group.

On December 8, Felda, which owns a 21.24% stake in FGV, is increasing its stake in the company to 35.12% and is proposing to take FGV private at RM1.30 a share.

Felda has entered into a conditional share purchase agreement with the Retirement Fund (Incorporated) to purchase 222.48 million FGV shares representing 6.1% for RM289.2 million or RM1.30 per share.

Meanwhile, Maybank IB said Felda has also entered into a share purchase agreement with Urusharta Jamaah Sdn Bhd to purchase 283.71 million FGV shares – representing 7.78% equity interest in FGV – for RM368.8 million or RM1.30 per share.

Upon completion of the proposed acquisition, Felda, together with the persons acting in concert with it, will collectively hold more than 50% of FGV shares. – Bernama, January 12, 2021