Felda lifts FGV stake past 82pct, needs 90pct by July 8 for delisting

New Straits Times

2 days ago

KUALA LUMPUR: The Federal Land Development Authority (Felda) has raised its stake in FGV Holdings Bhd to more than 82 per cent, in its second attempt to privatise the plantation group ahead of the July 8 deadline.
Felda acquired a total of 2.25 million FGV shares between May 27 and June 3, increasing its direct stake to 69.82 per cent or 2.55 billion shares, exchange filings showed.
Including holdings by parties acting in concert (PACs), Felda now controls 82.24 per cent of FGV, or just over three billion shares.
The transactions follow the state-backed rural development agency's unconditional voluntary takeover offer launched on May 26.
The offer, priced at RM1.30 per share, is being made via Maybank Investment Bank Bhd on behalf of Felda to acquire all remaining shares not already owned by Felda and its PACs.
The offer is classified as unconditional because Felda already holds more than 50 per cent of FGV's voting shares, giving it control without needing further shareholder approval.
However, to delist the company, Felda must raise its stake to 90 per cent by the offer's closing date on July 8. If that threshold is reached, trading in FGV shares will be suspended five market days later, followed by a formal withdrawal from the Main Market.
This is Felda's second attempt to privatise FGV. A similar offer made in December 2020 at the same price closed in March 2021 with Felda holding about 81 per cent, below the level needed to trigger a compulsory acquisition.
FGV's public shareholding spread has remained below the 25 per cent minimum required by Bursa Malaysia ever since. As of May 13, the public float stood at 13.09 per cent.
Kenanga Investment Bank Bhd has been appointed as the independent adviser.
Trading in FGV shares has picked up sharply in recent weeks. The stock began the year at RM1.12 and had mostly hovered between RM1.01 and RM1.16 prior to the takeover announcement.
On May 2, shares jumped to RM1.19 from RM1.09, with volume surging to 3.97 million shares. It was the counter's busiest session in a year, fuelling talk that the market had already sniffed out Felda's return.
The rally intensified in mid-May, with the stock hitting RM1.35 on May 16, its highest level since the early May spike.
On May 27, a day after the offer was announced, volume rose to 6.96 million shares. This marked the stock's busiest trading day in more than two years, with the price closing at the offer level of RM1.30.
At market close, FGV shares rose one sen, or 0.77 per cent, to RM1.31, with 652,300 shares traded. This gave the company a market value of RM4.74 billion.
FGV made its debut on Bursa Malaysia in June 2012, raising RM10.4 billion at RM4.55 a share. The initial public offering, which valued the group at RM16.6 billion, was the world's second-largest that year after Facebook.
Analysts have recommended that investors accept Felda's unconditional voluntary takeover offer to privatise FGV, describing the RM1.30 per share cash offer as fair and attractive, with a clear exit opportunity for shareholders.
The offer is also seen as a near-term floor for the stock, representing a premium of about 10 per cent over its one-year volume-weighted average price.