FGV Holdings Bhd has reaffirmed its intention to proceed with a bonus issue, pending government consent for its controlling shareholder, Federal Land Development Authority (Felda), to move forward.

Felda, which owns an 81.9% stake in FGV, is awaiting approvals from the Ministry of Finance and the Prime Minister’s Department.

The proposed bonus issue involves issuing 364.82 million new FGV Islamic redeemable preference shares (RPS-i) on a one-for-10 basis, aimed at reducing Felda’s stake to comply with public shareholding spread requirements.

The bonus issue was initially set for the fourth quarter of 2023, but the approval period for the bonus RPS-i expired on April 10, and the extended deadline for issuing the relevant circular has now passed.

FGV plans to reapply for listing and submit the draft circular for Bursa Securities’ review once necessary consents are obtained.

As of May 17, 2024, FGV’s public shareholding spread was at 13.09%, and the company has received six extensions to meet this requirement, with the latest extension valid until September 2 this year.

Shares in FGV closed up 0.85% at RM1.18 on Tuesday, with a market capitalisation of RM4.3 billion. — TMR