FGV Holdings secures nod for subsidiary buyout
KUALA LUMPUR: FGV Holdings Bhd has secured shareholders' approval to acquire the remaining equity interests in eight subsidiaries from Koperasi Permodalan Felda Malaysia Bhd (KPF) for RM229.8mil to consolidate its corporate structure.
The approval was granted during the company's EGM on June 26, following its 17th AGM on the same day.
In a statement yesterday, FGV said FGV Palm Industries Sdn Bhd, a 72%-owned indirect subsidiary, will acquire the remaining stakes in three subsidiaries from KPF for RM54.7mil, while Felda Holdings Bhd, a wholly-owned subsidiary, will acquire the remaining interests in five subsidiaries for RM175.1mil.
'This strategic exercise aims to consolidate FGV's corporate structure, enhance decision-making agility, and ensure tighter alignment with the group's strategic priorities.
'With full ownership, FGV will be better equipped to drive performance and accelerate execution across its core businesses,' it said.
Meanwhile, FGV said it posted a 14% increase in revenue to RM22.16bil for the financial year ended Dec 31 (FY24), with net profit at RM276mil, supported by operational efficiencies and improved margins.
FGV chairman Tan Sri Rastam Mohd Isa said last year was a period of solid operational progress for the group.
'Despite global economic headwinds, geopolitical uncertainty, and environmental challenges, FGV remained resilient and agile, emerging stronger and more focused, turning challenges into opportunities,' he said.
Looking ahead, FGV group chief executive officer Fakhrunniam Othman said the group remains cautious as it navigates an unpredictable global marked by trade tensions and market volatility.
'We are sharpening our focus on operational excellence, stakeholder partnerships, high-value products and advanced technologies to ensure FGV remains resilient and future-ready,' Fakhrunniam said. — Bernama
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