No progress on talks with FGV, says Century Logistics

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KUALA LUMPUR (Sept 23): Century Logistics Holdings Bhd said there has been no progress on the discussions with Felda Global Ventures Bhd (FGV) for the latter to acquire a stake in the total logistics provider, and does not see any collaboration between the two companies happening in the near term.

Century finance director Edwin Yeap said there were previously talks between the company and FGV, but no formal agreement has been signed as well as there has been no update on the matter since.

“We were intially looking into opportunities to collaborate with FGV, such as through a business cooperation. It was not only limited to FGV acquiring a stake in Century.

“However, we do not envision any form of collaboration to happen,” he told reporters after Century’s extraordinary general meeting (EGM) today.

Meanwhile, managing director Steven Teow said Century is always on the lookout for opportunities to grow the company, both organically and non-organically.

“We are also looking for landbanks for more industrial developments,” Teow said, adding that there has been a lack of industrial parks in Malaysia.

On mergers and acquisitions, Teow said that the company will look to acquire businesses that are viable and wants to “buy in” rather than “buy out” a business.

“We would like to buy into a company and help it grow, rather than merely cashing out on the business,” he said.

Earlier at the EGM, Century shareholders approved a proposed exercise consisting of a bonus issue and a share split.

The bonus issue entails an issuance of 61.03 million shares on the basis of one bonus share for every two shares held, while the share split comprises the subdivision of every one share into two subdivided shares.

The exercises are expected to be completed by the fourth quarter of 2014.

At noon market break, shares of Century fell 1 sen to RM2.44, bringing its market capitalisation to RM297.84 million.