KUALA LUMPUR –The Federal Land Development Authority (Felda) now has an 81% stake in FGV Holdings Bhd and its affiliates, including Koperasi Permodalan Felda Malaysia Bhd (KPF).
This follows the mandatory offer period on remaining unowned shares that expired yesterday.
In a statement today, Felda said 987.3 million shares, or 27.1%, were received following the mandatory general offer, while 125.6 million shares (3.4%) were bought from the open market.
This means that Felda and KPF now control 81% of FGV shares, the Pahang government (5%), and the Sabah government and its premier investment arm Sawit Kinabalu (4%).
Felda chairman Datuk Seri Idris Jusoh said as a subsidiary, it will enable the management of FGV’s land lease agreement estates, together with oil palm mills, to be integrated with the agency’s estates, rendering them more efficient and effective for mutual benefit.
“I believe that the cooperation between Felda and FGV will form a synergy that brings benefits to both organisations.
“Moving forward, it is important that we hold on to the principle of ‘We are one’.”
Felda director-general Datuk Amiruddin Abdul Satar said the cooperation between the agency and FGV is expected to provide added value to the former, especially by focusing more on downstream activities, which were previously given less attention.
“Downstream activities will provide higher profit margins, and will be able to strengthen Felda’s financial position more sustainably.”
The acquisition of FGV is viewed as an important step in the government-approved Felda Rehabilitation Plan for the benefit of 112,638 settlers and two million Felda senior citizens. – Bernama, March 16, 2021
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