KUALA LUMPUR: FGV Holdings Bhd
will acquire full ownership of eight subsidiaries via share purchases totalling RM229.75 million from Koperasi Permodalan Felda Malaysia Bhd (KPF).
In a filing to Bursa Malaysia today, FGV said its units, FGV Palm Industries Sdn Bhd (FGVPI) and Felda Holdings Bhd (FHB), have signed conditional share sale agreements to acquire the remaining stakes in the companies currently jointly owned with KPF.
Under the agreements, FGVPI will acquire the remaining interests in three companies - FGV Kernel Products Sdn Bhd (16.67 per cent), FGV Refineries Sdn Bhd (33.33 per cent) and FGV Marketing Services Sdn Bhd (49 per cent) - for RM54.70 million.
Meanwhile, FHB will purchase the remaining stakes in five companies - FGV Agri Services Sdn Bhd (23.08 per cent), FGV Transport Services Sdn Bhd (49 per cent), FGV Security Services Sdn Bhd (49 per cent), FGV Prodata Systems Sdn Bhd (20 per cent), and FGV Rubber Industries Sdn Bhd (28.57 per cent) - for RM175.05 million.
FGV said the acquisitions will be fully funded through a mix of RM140 million in new borrowings and RM89.7 million from internal funds.
"The exercise will allow FGV to streamline operations and gain better control over strategic decision-making and performance management across its subsidiaries,” it said.
The group said proposed acquisitions would allow the FGV Group to streamline the company’s business operations and facilitate faster decision-making, which better aligns with the group’s strategic direction.
The proposed acquisitions are expected to be completed by the third quarter of 2025, subject to shareholder and regulatory approvals.
Maybank Investment Bank is acting as the principal adviser, while QuantePhi Sdn Bhd has been appointed as the independent adviser to assess the fairness of the deal to minority shareholders. - Bernama
