KUALA LUMPUR (Oct 15): FGV Holdings Bhd has received an expression of 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, confirming a previous report by The Edge that the tycoon was eyeing a stake in the world's largest crude palm oil (CPO) producer.
According to FGV's filing with the bourse today, PLSB intends to participate in FGV via an injection of plantation assets in exchange for shares. PLSB owns the Tradewinds group of companies, which include Tradewinds Plantation Bhd and Central Sugars Refinery Sdn Bhd, which are in the same businesses FGV is involved in.
The timing seems opportune, as CPO prices have recovered from its trough in May. The commodity's three-month futures price has climbed from a low of RM1,962 in May to RM2,826 today.
“The board of FGV decided on Oct 15 to deliberate upon the matter and has resolved to explore and evaluate the proposition. The board wishes to assure shareholders and key stakeholders that it will discharge its fiduciary duty in any such deliberation,” FGV said in its filing.
On Sept 23, 2019, The Edge reported, citing sources familiar with the matter, that Syed Mokhtar (pictured) was eyeing a 20% stake in FGV, which could see him eventually take control of the group.
It was understood that the plan includes the businessman acquiring a block of FGV shares from the Federal Land Development Authority (FELDA), which owns 33.66% in FGV, as well as buying out Koperasi Permodalan FELDA Malaysia Bhd (KPF), which holds 4.75%.
The report also said Syed Mokhtar may entice other shareholders to sell their stakes, including the Ministry of Finance's special purpose vehicle Urusharta Jamaah Sdn Bhd, which has 8.03% in FGV, Kumpulan Wang Persaraan (Diperbadankan) or KWAP (6.05%), and the Pahang government (5%).
FGV shares slipped one sen or 0.93% to close at RM1.07 today, giving it a market capitalisation of RM3.9 billion.