KUALA LUMPUR (March 11): FGV Holdings Bhd (KL:FGV) said Bursa Securities has rejected the plantation group's application for a further six-month extension to comply with the public shareholding spread requirement.
The rejection comes after FGV’s previous six-month extension, granted on Sept 13, 2024, expired on March 2, 2025. The group has, prior to this rejection, sought and obtained seven extensions to the deadline to meet the public shareholding spread requirement.
As of Feb 19, 2025, FGV’s public shareholding spread stood at 13.09%, noted the group's bourse filing on Tuesday, far short of the minimum requirement of 25%.
Following Bursa Securities' decision, FGV has been directed to rectify the breach within six months, by Sept 10, 2025. The group said it will continue working with major shareholder Federal Land Development Authority (Felda) and other stakeholders to explore action plans to meet the regulatory threshold within the timeframe. Felda owns an 81.9% stake in FGV.
Felda had previously failed in its bid to take FGV private at RM1.30 per share. The government agency only managed to obtain 81% equity interest — against the required 90% — in the plantation group as the offer closed in March 2021.
Following the unsuccessful attempt, FGV proposed a bonus issue of Islamic redeemable preference shares as part of its rectification plan to comply with the public shareholding spread requirement.
However, as of August 2024, FGV said it was still waiting for its controlling shareholder Felda to obtain the government's consent on the bonus issue, which was initially planned for completion in the fourth quarter of 2023.
Shares in FGV ended one sen, or 0.88%, lower at RM1.12 on Tuesday, giving the group a market capitalisation of RM4.09 billion.
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