Malaysian palm oil firm Felda pursuing another takeover attempt of FGV: report
10.04.2021 (www.businesstimes.com.sg) - [KUALA LUMPUR] - Malaysia's state-owned palm oil company Felda will make another offer to buyout FGV Holdings Bhd, the Edge Weekly reported on Saturday, despite a failed takeover attempt last month.
The Federal Land Development Authority, or Felda, said in March that it had only obtained 81 per cent equity interest in FGV - the world's largest crude palm oil producer - at the end of the offer deadline.
Felda is "firm in its plan" to take over and privatise the plantation company, and is expected to make a fresh offer six months or more after the previous bid, the Edge Weekly reported, citing economy minister Mustapa Mohamed.
"The takeover of FGV and its privatisation will guarantee a more sustainable business model and income stream for Felda, which is currently discussing with FGV plans to strategise FGV businesses and reorganise FGV's group structure to optimise returns for Felda, especially for the settlers," Mr Mustapa said, referring to the farmers.
Felda and FGV did not immediately respond to requests for comment.
FGV's independent directors in January urged investors to reject the Felda takeover bid, saying the offer price of 1.30 ringgit (42 Singapore cents) a share was unfair. That is 8 per cent below Friday's close of 1.41 ringgit.
FGV has seen some management changes since the failed takeover attempt.
Dzulkifli Abd Wahab, a former director general of Felda, was appointed as non executive chairman. Haris Fadzilah resigned as the chief executive officer this week.
REUTERS