KUALA LUMPUR: FGV Holdings Bhd’s shares jumped over 8% in early trade Wednesday following the Federal Land Development Authority’s (Felda) mandatory takeover offer.
The plantation giant rose 8.47%, or 10 sen to RM1.28. It is currently the most actively traded counter with over 53 million shares traded.
Felda does not intend to maintain the listing status of FGVon the Main Market of Bursa Malaysia upon mandatory takeover offer.
Felda has also confirmed that the offer will not fail due to insufficient financial capability and that every holder who wishes to accept the offer will be paid in full by cash.
Felda has launched a mandatory takeover offer for all the remaining shares in FGV that it did not already hold for a cash consideration of RM1.30.
This was triggered after Felda acquired two blocks of shares from state-linked agencies Urusharta Jamaah Sdn Bhd and Retirement Fund Incorporated (KWAP).
On Dec 8, Felda entered into two conditional share purchase agreements (CSPAs) with the two agencies to acquire the shares for a total cash consideration of RM658.05mil.