Felda now owns 89pct of FGV, extends closing date for acceptance to Aug 15
This will be the final closing date, according to Maybank Investment Bank Bhd (Maybank IB) on behalf of Felda. The previous deadline for FGV's minority shareholders to accept the offer is July 7.
Last month, Felda launched an unconditional voluntary takeover offer for all remaining shares in FGV that it does not already own at RM1.30 per share.
This is part of Felda's long-term strategic plan to privatise FGV and consolidate its control over the plantation company.
Felda and parties acting in concert already collectively held about 89 per cent of FGV shares as of today, Maybank IB said.
The offer targets the remaining stake in FGV, comprising about 1.1 billion shares.
If the takeover results in Felda holding 90 per cent or more of FGV shares, it intends to delist the company from Bursa Malaysia.
The cash offer represented a 9.91 per cent premium over the six-month volume-weighted average price of FGV shares up to the last trading day before the initial notice of offer.
FGV has not been able to comply with Bursa's free float ruling, which requires at least 25 per cent of the shares to be held by the public, since February 2021.
As of February this year, FGV's public shareholding reportedly had fallen to 13.09 per cent, below Bursa's 25 per cent minimum threshold.
Bursa had rejected FGV's application for an extension and has instructed the company to rectify the shortfall by Sept 10 this year, failing which trading could be suspended.
This is the second attempt by Felda to privatise FGV. The first was in December 2020, which resulted in the former acquiring more than 82 per cent of FGV. The offer price in 2020 was also RM1.30.
Based on FGV's latest annual report, the minority shareholders include the Sabah government and Yayasan Islam Terengganu.
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