KUALA LUMPUR (Sept 4): FGV Holdings Bhd has been granted another six-month extension by Bursa Malaysia Securities Bhd to comply with the minimum public shareholding spread requirement, it said on Monday.
As of Aug 22, the public shareholding spread of the company was at 13.09%, compared with the minimum requirement of 25%.
This marks the fifth time the plantation group has received an extension deadline from Bursa Securities. The latest extension ends on March 2, 2024.
It first received the extension in March 2021 to August 2021. It was postponed further to February 2022, and later to August 2022 before an initial rejection by Bursa Securities for another extension — until a bonus issue of preference shares was proposed on June 30 this year.
The bonus issue entails the issuance of 364.82 million new Islamic redeemable preference shares (FGV RPS-i) on the basis of one FGV RPS-i for every 10 existing FGV shares.
The Federal Land Development Authority (Felda), which owns 81.9% in FGV following an unsuccessful privatisation offer, will pare down its stake in FGV after the completion of the bonus issue to comply with the shareholding spread requirement, FGV said when announcing the proposal.
FGV expects the bonus issue to be completed in 4Q2023, pending shareholders' approval at an extraordinary general meeting to be held later.
FGV’s shares closed one sen or 0.74% higher at RM1.37 on Monday, valuing the group at RM5 billion.