KUALA LUMPUR (March 10): The Federal Land Development Authority (Felda), which owns a stake of about 80% in plantation group FGV Holdings Bhd, said FGV's substantial full-year net profit rise to over RM1 billion in financial year ended Dec 31, 2021 (FY21) has "directly" given a "positive impact" to Felda.

"This effort will help Felda strengthen its core business in plantations for the benefit of (Felda) settlers," Felda said in a Facebook post on Thursday (March 10).

For FY21, FGV's cumulative full-year net profit rose to RM1.17 billion from RM146.16 million a year earlier while revenue climbed to RM19.58 billion from RM14.08 billion, according to FGV's Bursa Malaysia filings on Feb 28, 2022.

FGV announced then a dividend of eight sen per share for FY21 compared to three sen a year earlier.

In a Feb 15, 2022 filing, FGV said Felda owned a cumulative stake of 79.94% in FGV as at Feb 9, 2022.

The 79.94% stake comprised a 67.52% direct stake and a 12.42% indirect equity portion of 12.42% in FGV, according to FGV.

Felda had raised its FGV stake to current levels via open market purchases of the latter’s shares and after Felda proposed a take-over offer for the remaining shares in FGV on Dec 8, 2020 at RM1.30 each, according to FGV's Bursa filings.

FGV said the initial closing date for the acceptance of Felda's offer was on Feb 2, 2021 but Felda had however, extended the deadline for the acceptance of the offer thrice, after which, the final closing date was fixed on March 15, 2021.

According to Felda's final closing date notice dated March 1, 2021 attached to FGV's Bursa filing on that day, Felda stated that it does not intend to maintain the listing status of FGV on the Main Market of Bursa.

"Accordingly, in the event the offeror (Felda) receives valid acceptances resulting in the offeror and its associates holding in aggregate 90% or more of the FGV shares (excluding treasury shares), an immediate announcement will be made by FGV.

"Upon such announcement, Bursa will suspend the trading in FGV shares immediately upon expiry of five market days from the closing date.

"Thereafter, the offeror will submit a request to FGV to take the necessary procedures to withdraw its listing status from the official list in accordance with Chapter 16 of the Listing Requirements," Felda said.

At 5pm on Thursday, FGV's share price closed down five sen or 2.5% at RM1.95.

At RM1.95, FGV has a market capitalisation of about RM7.12 billion based on the company's 3.65 billion outstanding shares.

According to Felda’s website, the organisation was established on July 1, 1956 under the Land Development Ordinance of 1956 for the development of land and relocation of settlers with the objective of poverty eradication through the cultivation of oil palm and rubber.

"In 1990, Felda was no longer recruiting new settlers. [The] government entrusted Felda to stand with its own financial [resources] and become a statutory body that can generate [its] own income to support various developments through a variety of businesses.

"Today, Felda continues to carry [a] major role by providing adequate and modern facilities for the schemes, ensuring the next generation of explorers [is] educated to enhance the socio-economic and quality of life, and ensuring the schemes can generate various economic activities as well as bridge the gap between urban and small urban areas. Felda’s focus is to be the 'economic powerhouse' in generating economic activities in 2020 through its structural programme with a wide range of human capital potential,” Felda said.