KUALA LUMPUR (July 29): Trading in the shares of FGV Holdings Bhd (KL:FGV) will be suspended upon market close on Aug 15 as its largest shareholder, the Federal Land Development Authority (Felda), has crossed the shareholding threshold required to take the plantation firm private.

Felda and parties acting in concert held 3.35 billion shares or a 91.73% stake in FGV at market close on Tuesday, said Maybank Investment Bank in a statement, above the 90% threshold required.

This is Felda’s second attempt to privatise FGV, which it offered to acquire for RM1.30 per share — unchanged from its first attempt in 2020, which valued the group at RM4.74 billion. The latest bid saw FGV extend the offer deadline from July 7 to Aug 15.

The offer “will remain open for acceptances” until 5pm on Aug 15, Maybank IB said. Shares of FGV settled up one sen or 0.77% at RM1.31 on Tuesday.

Felda’s first attempt saw it raise its FGV stake to 53.27%, from 33.66% previously. It triggered the takeover offer by acquiring shares from Retirement Fund (Incorporated) or KWAP, and Urusharta Jamaah Sdn Bhd for RM658 million.

The episode would soon spell the end of FGV’s days on the stock market after 13 years.

One of Malaysia's largest ever IPOs and the third largest in the world in 2012 when it debuted, FGV — then Felda Global Ventures Holdings Bhd — listed at RM4.55 per share and raised RM10.5 billion, of which RM4.45 billion went to the company.

Felda had planned for FGV to operate its commercial arm and expand into upstream and downstream palm oil businesses and other agribusinesses. However, a series of underperforming acquisitions dragged the group, and pushed it to losses in 2018 and 2019. 

However, shareholders held on to FGV shares when Felda sought to take it private in 2020, partly as an independent valuation priced the company at RM1.42-RM1.60 per share. When the second offer came in May this year, the independent valuer for that exercise raised it to RM1.83-RM1.99 per share, much higher than the RM1.30 offer price.

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