Thursday 28 Mar 2024
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KUALA LUMPUR (Oct 16): FGV Holdings Bhd rose as much as 7.48% or eight sen to RM1.15 this morning after the plantation unit received buying interest from Perspective Land (M) Sdn Bhd (PLSB), which is wholly-owned by Tan Sri Syed Mokhtar Albukhary’s privately-held Restu Jernih Sdn Bhd.

At 10.57am, the counter had pared some gains, but was still up five sen or 4.67% at RM1.12. It saw 10.12 million shares change hands.

Hong Leong Investment Bank (HLIB) Research analyst Chye Wen Fei in a note today maintained the research house's "hold" rating for FGV, with an unchanged target price (TP) of RM1.08, given the sketchy details provided thus far.

“Nevertheless, we believe near-term share price sentiment will be lifted, arising from the latest development,” said Chye.

Chye also noted that the latest development could trigger a mandatory general offer (MGO) as PLSB had a book value of about RM1.9 billion as at Dec 31, 2018 (versus FGV’s book value of about RM4.2 billion as at Dec 31, 2019), and shareholders’ approval will be required in an extraordinary general meeting (EGM) to be held.

“Besides, we note that land lease agreements would also be a key consideration in this matter,” Chye added.

According to FGV's filing with the bourse exchange yesterday, PLSB intends to participate in FGV via an injection of plantation assets in exchange for shares.

PLSB owns the Tradewinds group of companies, including Tradewinds Plantation Bhd and Central Sugars Refinery Sdn Bhd, which are in the same businesses FGV is involved in.

Edited BySurin Murugiah
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