EPF ceases to be substantial shareholder of FGV

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KUALA LUMPUR (June 18): The Employees Provident Fund (EPF) sold some shares in Felda Global Venture Bhd (FGV) after the latter’s proposed stake buy in Indonesia’s PT Eagle High Plantation Tbk for US$680 million — a price that the provident fund finds too steep.

The latest filing to Bursa Malaysia shows that EPF sold some 8.2 million shares, about 0.22% stake, in FGV (fundamental: 1.15; valuation: 2.0) on June 15. The provident fund has ceased to be substantial shareholder after the share sales.

The transaction price was not disclosed in the filing.

The proposal to buy a 37% equity stake in Eagle High has sent FGV share price to record low of RM1.65 on Monday as analysts commented that the plantation group has overpaid for the non-controlling stake.

FGV was unchanged at RM1.68, with a market capitalisation of RM6.13 billion.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)