Felda plans to take FGV private 8 years after controversial IPO
The Federal Land Authority (Felda) is reportedly planning to take FGV Holdings Berhad private, eight years after its controversial initial public offering (IPO) in 2012.
According to The Edge, Felda is offering RM658 million (RM1.30 per share) to raise its stake in FGV from 21.24 percent to 35.12 percent...
The Federal Land Authority (Felda) is reportedly planning to take FGV Holdings Berhad private, eight years after its controversial initial public offering (IPO) in 2012.
According to The Edge, Felda is offering RM658 million (RM1.30 per share) to raise its stake in FGV from 21.24 percent to 35.12 percent.
It is proposing to buy the 6.1 percent stake held by Retirement Fund Incorporated (KWAP), and 7.78 percent held by Urusharta Jamaah Sdn Bhd.
The matter was announced by Maybank Investment Bank on Felda’s behalf today, according to the report.
FGV last traded today at RM1.27, down 72.1 percent from its RM4.55 IPO price.
The move comes amid a dispute between Felda and FGV, where Felda mulled taking back 350,000ha of land leased to FGV citing poor earnings following the RM5.7 billion IPO.
On Nov 2, FGV had pleaded with Felda to stop issuing press releases about the land leases and bring the matter to the negotiation table instead.
Meanwhile, The Edge reported that Felda had signed conditional share purchase agreements (CSPAs) with KWAP to take over its 222.48 million FGV shares for RM289.2 million, and with Urusharta Jamaah for its 283.71 million FGV shares for RM368.8 million.
The report quoted Maybank IB saying that once the acquisition is complete, Felda and other parties acting in concert with it will collectively hold more than 50 percent of FGV shares.
This would trigger a mandatory takeover offer.
“Upon the CSPAs becoming unconditional, Felda will serve the notice of mandatory offer to the board of directors of FGV,” the bank was quoted as saying.
“For clarity, the proposals will not result in an MO by Felda to acquire all the remaining voting shares in MSM Malaysia Holdings Bhd not held by FGV,” it reportedly added.
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