Felda makes fresh takeover offer for FGV in second RM1.30 bid
The unconditional voluntary takeover offer, made via Maybank Investment Bank Bhd, comes as Felda and its parties acting in concert (PACs) now control 86.93% of FGV's voting shares.
This marks a significant jump from the 33.66% stake Felda held during its last privatisation attempt four years ago.
As at May 20 – the latest practicable date – Felda directly held 2.54 billion FGV shares, representing 69.50% of the plantation group's issued share capital.
The offer price is 1.56% higher than FGV's last traded price of RM1.28 and about 10% above its one-year average of RM1.18.
The offer values FGV at RM4.75 billion and represents a steep discount to its initial public offering (IPO) price of RM4.55 in 2012, when it raised RM10.5 billion in what was then one of Malaysia's largest listings.
Felda's current attempt to regain full control comes after Bursa Malaysia rejected FGV's request in March for more time to address its non-compliance with public shareholding spread requirements.
FGV has been in breach of the minimum 25% public float rule since February 2021.
The latest offer is led by Felda's wholly owned subsidiary Felda Asset Holdings Company Sdn Bhd, along with the Pahang state government under a concert-party agreement.
Other PACs include Koperasi Kakitangan Felda Malaysia Bhd (Felkop) – whose board comprises Felda management – as well as Sulong Jamil Mohamed Shariff and his wife, Salina Hj Samsudin.
According to FGV's filing with Bursa Malaysia, the offer will remain open for at least 21 days and is scheduled to close at 5pm on June 15, unless extended or withdrawn with the approval of the Securities Commission Malaysia (SC).
Felda reserves the right to revise the offer terms, which would be announced at least two days before the closing date.
Maybank Investment Bank, acting on behalf of Felda, said the takeover exercise complies with the Capital Markets and Services Act 2007 and the SC's rules on takeovers and mergers.
Earlier today, Bursa Malaysia approved FGV's request to suspend trading in its shares pending a material announcement. Trading will resume at 9am on Tuesday, May 27.
FGV's share price had risen steadily since late April, reaching a near one-year high of RM1.35 in mid-May, before settling at RM1.28 prior to the suspension.
Felda's previous offer in 2020 followed its acquisition of shares from Retirement Fund (Incorporated) [KWAP] and Urusharta Jamaah Sdn Bhd for RM658 million, triggering a mandatory general offer at the same RM1.30 price.
At the time, Felda had also sought Cabinet approval to terminate its 99-year land lease agreement with FGV, which had allowed the company to manage Felda's plantation land in return for lease payments. — TMR
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