KUALA LUMPUR (Aug 13): FGV Holdings Bhd (KL:FGV) on Tuesday reaffirmed its plan to undertake a bonus issue, saying it is still waiting for its controlling shareholder Felda to obtain the government's consent on the matter.
Felda, or the Federal Land Development Authority, holds an 81.9% stake in the plantation giant.
FGV's update on the proposed bonus issue follows the expiration of Bursa Securities' approval for the quotation of the bonus Islamic redeemable preference shares (RPS-i) on April 10, and the expiration of the extended period for issuing the relevant circular on Tuesday.
The bonus issue, initially planned for completion in the fourth quarter of 2023, involves issuing 364.82 million new FGV RPS-i on a basis of one RPS-i for every 10 existing FGV shares. Additionally, FGV has proposed amendments to its constitution to facilitate the bonus issue.
In its filing with Bursa Malaysia on Tuesday, FGV said it is waiting for Felda to receive directions from the Ministry of Finance and the Prime Minister’s Department regarding the bonus issue.
"FGV intends to take the necessary steps to resume the implementation of the proposals and re-apply for the listing and quotation of the FGV RPS-i as well as submit the draft circular for Bursa Securities’ perusal after Felda has obtained the necessary consents, subject to approval from the board," the group said.
The proposed bonus issue aims to reduce Felda’s stake in FGV to meet the public shareholding spread requirements, as announced in June 2023. As of May 17, 2024, FGV’s public shareholding spread stood at 13.09%.
It is northworthy that FGV has previously obtained six extensions to meet this requirement, with the latest extension valid until Sept 2 this year.
Shares in FGV ended one sen, or 0.85%, higher at RM1.18 on Tuesday, giving the group a market capitalisation of RM4.3 billion.