Recasts with advisor's suggestions, provides particulars KU
Recasts with advisor’s suggestions, provides particulars
KUALA LUMPUR, Jan 22 (Reuters) – The unbiased administrators of Malaysian palm oil big FGV Holdings FGVH.KL urged buyers on Friday to reject a takeover bid by prime shareholder Felda, saying its provide value was unfair, although an exterior adviser referred to as it affordable.
Final month state-owned Felda, or the Federal Land Growth Authority, mentioned it might enhance its stake in FGV, because it strikes in direction of taking management of the world’s largest producer of crude palm oil.
It provided 1.30 ringgit ($0.3221) for every share it didn’t already personal. Felda managed 54.09% of FGV shares by Jan. 15.
On Friday, FGV mentioned its 5 unbiased administrators requested buyers to reject the provide, which might have taken the corporate non-public, because it was under honest worth.
Unbiased adviser RHB Funding Financial institution put FGV’s honest worth at 1.42 ringgit to 1.60 ringgit a share, FGV mentioned in an announcement.
“Preserving FGV as a public listed firm will make sure the transparency and well timed disclosures of FGV, being one of many largest plantation corporations on the planet…” it mentioned.
RHB added that whereas the provide was “not honest”, it was affordable, as FGV had not acquired every other presents, and the financial institution urged minority shareholders to just accept the provide.
It added that Felda’s present shareholding provides it management of FGV’s selections, FGV mentioned.
FGV debuted in 2012 as an investor favorite at a proposal value of 4.55 ringgit ($1.13) per share in what was hailed because the world’s second largest IPO after Fb.
However shares have since tumbled as the corporate grappled with monetary and governance points.
Shareholders have till Feb. 2 to just accept the Felda provide, FGV mentioned.
($1=4.0360 ringgit)
(Reporting by Mei Mei Chu; Modifying by Clarence Fernandez)
(([email protected]; +6-139-492-9424; Reuters Messaging: @meixchu on Twitter))
The views and opinions expressed herein are the views and opinions of the creator and don’t essentially mirror these of Nasdaq, Inc.