KUALA LUMPUR: The Federal Land Development Authority (Felda) has issued an offer document in relation to its unconditional mandatory takeover offer for all remaining ordinary shares in FGV Holdings Bhd which it does not own, except treasury shares.
In a Bursa Malaysia filing, Felda said the cash offer of RM1.30 per share will be open for acceptances until 5pm on Feb 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 will be issued latest by Jan 22, 2021. “Felda does not intend to maintain the listing status of FGV on the Main Market of Bursa Securities,” it said.
It noted that the offer will provide an opportunity for Felda to increase its shareholding and further consolidate its control of 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.
Felda said that after the completion of the offer, it intends to continue the existing businesses of FGV in oil palm plantation and related downstream activities, sugar refining, manufacturing and logistics.
It also does not have any plans to liquidate any company within the FGV group.
On Dec 8 2020, Felda, which owned a 21.24% stake in FGV, increased its interest in the company to 35.12% and proposed to take FGV private at RM1.30 a share.
Felda 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.
Felda 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 acquisitions, Felda and persons acting in concert with it will collectively hold more than 50% of FGV shares. – Bernama
