FGV Holdings Bhd has called off its long-gestating proposed bonus issue, following a renewed unconditional voluntary takeover offer by its controlling shareholder, the Federal Land Development Authority (Felda), to acquire all remaining shares at RM1.30 each.
FGV had been planning a bonus issue of Islamic redeemable preference shares (RPS-i) as part of a strategic effort to meet Bursa Malaysia’s minimum public shareholding spread requirement of 25%.
The bonus issue, initially slated for the fourth quarter of 2023, involved issuing one new RPS-i for every 10 existing shares, totaling approximately 365 million new shares.
This plan aimed to reduce Felda’s stake – which stood at 81.9% in August 2024 – and increase the public float, which was just 13.09% as of May 2024.
However, the bonus issue was repeatedly delayed pending government approval from the Ministry of Finance and the Prime Minister’s Department.
Bursa Malaysia granted several extensions for FGV to meet the public spread requirements, with the most recent deadline on September 2, 2024. — TMR
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