The agency currently has a shareholding of 2.5b shares, which is equivalent to a 68.26% stake in FGV
By S BIRRUNTHA / Pic By MUHD AMIN NAHARUL
THE Federal Land Development Authority (Felda) could request for another period of extension to keep its takeover offer open in a bid to acquire 90% of FGV Holdings Bhd’s listed shares.
The agency has acquired 57.75 million FGV shares from the open market and received 100.8 million valid acceptances for its RM1.30 per share unconditional mandatory takeover offer, which was triggered on Jan 12, 2021.
Felda currently has a shareholding of 2.49 billion shares, which is equivalent to a 68.26% stake in the company.
Felda’s initial deadline for the FGV offer has been extended from Feb2toFeb16.
Putra Business School Assoc Prof Dr Ahmed Razman Abdul Latiff said Felda may ask for another extension from Bursa Malaysia Securities Bhd to reach the 90% threshold, as the agency has under- lined its intent to take FGV private.
“I think Bursa Malaysia will grant them another extension,” he told The Malaysian Reserve (TMR) in a phone interview recently.
Ahmed Razman expects more FGV shareholders to take up the offer as it would be “unwise” for them to keep their shares in view of Felda’s intent to delist the oil palm grower.
“If that happens, the remaining shareholders will face difficulties in selling their shares as they will no longer be traded on the stock exchange. It is better to cash out their shares now,” he said.
Likewise, with FGV’s share price now almost stagnant at the RM1.30-RM1.31 range on the open market, many can exit here as well.
In a recent filing to Bursa Malaysia, FGV said its public shareholding spread has fallen to 23.93% of its issued share capital, which is
below the minimum required level of 25% under Bursa Malaysia’s listing requirements.
Another industry analyst, who preferred to remain anonymous, told TMR it is unlikely Felda will make a higher price offer than RM1.30, although FGV’s share price has hit RM1.31 in the past two weeks.
“Some would say the RM1.30 offer is reasonable. However, given the sector’s recent boom, others may feel the RM1.30 offer is not a fair price now,” he said.
According to company filings to the stock exchange, Felda acquired 6.74 million FGV shares from the open market and received 78.87 million valid acceptances last week after the extension of the offer period was announced.
FGV said the shortfall in the public shareholding spread is a direct consequence pursuant to the unconditional mandatory takeover offer by Felda. The shortfall may increase further with the extension of the offer deadline, it added.
FGV’s share price ended flat at RM1.30 yesterday, valuing the company at RM4.74 billion.
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