Why taking FGV private is the best option

Another point of contention for FGV is the LLA with Felda, which is now about to be terminated. Over the years, FGV has paid some RM2.09bil in lease payments and RM507mil in the share of operating profit to Felda

LISTED on June 28,2012, FGV Holdings Bhd was then the world’s second-largest public issue for the year, having successfully raised RM10.4bil, and was ranked as the 25th largest market capitalisation company on Bursa Malaysia with a value of more than RM16bil.

Some RM6bil from the initial public offering (IPO) proceeds went to Felda itself, while FGV raised RM4.33bil in net proceeds from the public issue. In its first financial year-end post-listing in 2012, FGV had total shareholders’ funds of RM6.1bil, while its total cash balance stood at RM5.69bil and total debts, excluding the land lease agreement (LLA), was just under RM2.44bil. Effectively, FGV had net cash of RM3.25bil back then.