Higher FGV share price attracts new sellers

FGV’s share price soared to a 52-week high of RM1.67 before settling at RM1.57 at close


THE higher price of FGV Holdings Bhd’s shares has attracted new sellers, with shareholders linked to FGV’s top management among those who disposed of their equity interest in the integrated edible oils group.

The company’s bourse filing yesterday showed that FGV CEO Datuk Haris Fadzilah Hassan’s indirect interest of 25,000 shares (deemed interested by virtue of his spouse Siti Sapura Yusof) were sold for a consideration of RM1.56.

FGV chief internal auditor Zalily Mohamed Zaman Khan also sold her direct interest amounting to 75,700 shares or 0.002% of issued shares at RM1.60 a piece.

FGV’s share price soared to a 52-week high of RM1.67 yesterday before settling at RM1.57 at close, with 58.19 million shares changing hands.

The price surge added nearly RM1 billion to FGV’s valuation, rising from RM4.74 billion on Monday to RM5.73 billion.

An FGV shareholder, who spoke on condition of anonymity, told The Malaysian Reserve he considered the current traded price as fair value after taking into account future earnings.

However, he expects FGV’s share price to trade higher at around RM1.70 to RM1.80 per share.

FGV’s share price has been trading in a tight price range of between RM1.30 and RM1.33 over the last three months since the offer was tabled by the Federal Land Development Authority (Felda) on Dec 8.

Felda, in a statement yesterday, said it received a total of 987.3 million valid acceptances (27.1%) and acquired 125.6 million shares (3.4%) from the open market throughout the mandatory takeover offer period, raising its stake in FGV to 81%.

Other existing shareholders in FGV include the Pahang state government with 182.41 million shares or 5% equity interest, and the Sabah state government which has a 4.07% stake (148.54 million shares) through Sawit Kinabalu Sdn Bhd and chief minister of Sabah.

Felda chairman Datuk Seri Idris Jusoh, who is also Besut MP, said he believed the cooperation between Felda and FGV will form a synergy that benefits both parties.

“In order to keep moving forward, it is important for us to hold onto the principle that we are one,” Idris said in the same statement.

Separately, Felda NGO Consensus Council chairman Datuk Mazlan Aliman said the group remains consistent in its fight to ensure FGV is taken back by Felda.

“The immediate task upon FGV’s delisting is to restructure the company through good governance and reshift its focus towards its core business of oil palm plantation and other synergistic segments.

“FGV’s non-performing subsidiaries should also be rehabilitated. The revamp efforts undertaken by Lembaga Tabung Haji can be used as a reference,” he said.

Felda has previously indicated it does not intend to maintain the listing status of FGV on the Main Market of Bursa Malaysia.