20.01.2021 (www.nst.com.my) - KUALA LUMPUR: The Federal Land Development Authority (Felda) has acquired a total of 78.15 million shares in FGV Holdings Bhd from the open market on four different days this month.
Based on the notices issued by Felda adviser Maybank Investment Bank Bhd, the government agency bought the crude palm oil (CPO) producer's shares at RM1.29 and RM1.30 on January 13, 14, 18 and 19.
The biggest block was on January 18 when it bought 41.0 million FGV shares at RM1.30 each.
On Tuesday, Felda bought another 10.0 million shares also at RM1.30 each.
The purchases added to Felda's earlier acquisitions of FGV shares from two government-linked institutions early last month.
In a previous filing to Bursa Malaysia, Felda announced its acquisition of a total of 506.19 million shares from the Retirement Fund, Inc (KWAP) and Urusharta Jamaah Sdn Bhd for RM658 million at RM1.30 each.
On December 8, Felda had bought 222.48 million shares from KWAP or a 6.10 per cent stake in FGV for RM289.2 million at RM1.30 per share.
It also acquired 283.71 million shares from Urusharta Jamaah, representing a 7.8 per cent stake in FGV for RM368.8 million at RM1.30 per share.
The various shares acquisitions were part of Felda's restructuring to be more financially independent and sustainable.
Felda currently lease its 351,000 hectares of plantation land to FGV via a Land Lease Agreement (LLA) for 99 years from 2012 in return for a fixed payment of RM248 million annually and 15 per cent of the operating profit from LLA land.
Felda had last year said would issue an LLA termination notice and take over FGV's palm oil mills across the LLA estates.
However, FGV has yet to received any notice pertaining to the termination proposed by Felda.
FGV reportedly said Felda would need to compensate the company between RM3.5 billion and RM4.3 billion, excluding its palm oil mills on the leased land.
FGV also said it would start the process of terminating the LLA once it had received an official notice from Felda. https://www.nst.com.my/business/2021/01/659019/felda-buys-nearly-80-million-fgv-shares-over-four-days