KUALA LUMPUR (Jan 15): Federal Land Development Authority (FELDA) has acquired 5.14 million FGV Holdings Bhd shares for a total of RM6.64 million yesterday, following an earlier purchase of 22 million shares as part of its efforts to take the group private.
The smaller tranche of shares were also bought at RM1.29 apiece, one sen below its cash offer of RM1.30 for FGV shares.
To date, the agency has acquired 27.1 million of FGV’s shares from the open market, representing a 0.74% equity stake.
Earlier this week, FELDA issued an offer document in relation to its unconditional mandatory takeover offer for all the remaining ordinary shares in FGV that it does not already own, which is open for acceptances until Feb 2, unless extended or revised.
On Dec 8 last year, the agency proposed the takeover offer after acquiring 222.48 million FGV shares (6.1% stake) held by Retirement Fund (Incorporated) (KWAP) and 283.71 million shares (7.78% stake) held by the Ministry of Finance's special purpose vehicle Urusharta Jamaah Sdn Bhd for RM658 million cash.
The acquisitions raised FELDA's stake in FGV to 50.49%, triggering the requirement for the agency to extend the unconditional mandatory takeover offer.
FELDA said the offer provides an opportunity to further increase its shareholding and consolidate its control of FGV, placing the former “in a better position to align the future strategy and business direction of FGV”, it said in its offer document.
FELDA said it does not intend to maintain the listing status of FGV on the Main Market of Bursa Malaysia.
At noon market break, FGV fell one sen or 0.8% to RM1.29, giving a market capitalisation of RM4.7 billion.