KUALA LUMPUR: Federal Land Development Authority (Felda) wants to privatise FGV Holdings Bhd following its acquisition of a 13.88 per cent stake, or 506.19 million shares in FGV Holdings Bhd, from two vendors for a combined RM658 million.
The acquisitions from Kumpulan Wang Persaraan (Diperbadankan) or KWAP and Urusharta Jamaah Sdn Bhd will increase Felda's stake in FGV to 35.12 per cent.
Felda and parties acting in concert will make a mandatory general offer for the remaining shares they do not own at RM1.30 each.
Felda, in a statement today, announced that it was buying a 6.1 per cent FGV stake from KWAP and a 7.78 per cent interest from Urusharta Jamaah at RM1.30 each.
This would raise Felda's stake to 35.12 per cent from 21.24 per cent currently, said Maybank Investment Bank Bhd, which is Felda's principal adviser for the deal.
Felda had inked conditional share purchase agreements (CSPAs) with KWAP to take over its 222.48 million FGV shares for RM289.2 million, and with Urusharta Jamaah for its 283.71 million FGV shares for RM368.8 million.
Upon completion of the proposed acquisition, Felda, together with the parties acting in concert (PACs) with it, would collectively hold more than 50 per cent of FGV shares, Maybank IB said, thus triggering a mandatory takeover offer.
"Upon the CSPAs becoming unconditional, Felda will serve the notice of mandatory offer(MO) to the board of directors of FGV," Maybank IB said.
"For clarity, the proposals will not result in an MO by Felda to acquire all the remaining voting shares in MSM Malaysia Holdings Bhd not held by FGV," it added.
FGV closed unchanged at RM1.27 today.