Felda: FGV takeover crucial to recovery plan

 

In a statement today to allay concerns expressed by certain quarters over the sale offer of FGV shares that had been issued to FGV shareholders, Felda said the takeover did not involve the personal interest of any party and was made on practicable terms. — Reuters pic

KUALA LUMPUR, Jan 29 — The takeover of FGV Holdings Bhd by the Federal Land Development Authority (Felda) is a crucial step in the latter’s recovery plan that had been approved by the government for the benefit of its settlers.

In a statement today to allay concerns expressed by certain quarters over the sale offer of FGV shares that had been issued to FGV shareholders, Felda said the takeover did not involve the personal interest of any party and was made on practicable terms.“A virtual briefing session was also conducted for the Settlers' Consultative Committee members, Malaysian Felda Youth Council, Kami Anak Felda, Felda settlement and regional management, staff and retirees on the significance of this effort,” it said.

It added that the support of Felda staff, settlers and its whole population would definitely be one of the major factors in the success of the endeavour.

Felda said the offer price of RM1.30 per share was reasonable as it was the same price that had been freely and professionally negotiated with Retirement Fund (Incorporated) or KWAP and Urusharta Jamaah, which exceeded the market price and involved a 15 per cent premium over FGV's net asset value at RM1.13.

It also thinks that the offer price of RM1.30 was fair because it is 15 per cent higher than FGV’s RM1.13 net asset value on September 30, 2020 and 49 per cent higher than its RM0.87 net tangible assets on September 30, 2020.

In a separate statement, Maybank Investment Bank Bhd notified that the closing time and date for the shareholders to accept the unconditional mandatory takeover offer has been extended to February 16, 2021 at 5pm, from February 2 at 5pm.

Maybank IB is the principal advisor to Felda for the offer document.

On December 8, Felda proposed to launch the takeover offer after acquiring 222.48 million FGV shares (6.1 per cent stake) held by KWAP and 283.71 million FGV shares (7.78 per cent stake) held by Urusharta Jamaah Sdn Bhd for RM658 million cash.

As at January 29, Felda and persons acting in concert held 68.76 per cent stake in FGV. — Bernama