KUALA LUMPUR (May 6): FGV Holdings Bhd (KL:FGV) on Tuesday clarified that it has not received any formal notice from the Federal Land Development Authority (Felda) regarding a potential takeover offer or any corporate exercise that would result in the group's privatisation or delisting from Bursa Malaysia.

In a filing with Bursa Malaysia, FGV said it is not in a position to act on any privatisation matter until it receives official notification from its shareholders.

"It is important to note that any privatisation initiative is FGV's shareholders’ matter and not to be dealt at FGV’s level until an official notification in respect of such an exercise be communicated to FGV,” the group said.

The clarification came in response to an article by The Edge Malaysia weekly in its May 5, 2025- May 11, 2025 issue, which reported Felda as revisiting plans to privatise FGV.

Felda has reportedly hired Maybank Investment Bank Bhd to advise on a potential exercise that could happen in the next three to four months. The report also suggests that Felda has secured preliminary support from major shareholders and high-net-worth individuals with stakes in FGV.

FGV's key shareholders include Felda, Kerajaan Negeri Pahang with a 5% stake, and the chief minister of Sabah with a 1.81% stake. Other notable shareholders are Ekuiti Yakinjaya Sdn Bhd (0.57%), Yayasan Islam Terengganu (0.45%) and Datuk Freddy Lim Nyuk Sang of Kretam Holdings Bhd (0.39%).

In March, Bursa Malaysia rejected FGV's request for a six-month extension to meet the 25% public shareholding requirement, as FGV's public shareholding was only 13.09% as of February 19, 2025. This followed seven previous extensions, with the latest expiring on March 2.

Bursa directed FGV to address the issue by September 10, 2025. FGV is working with Felda, which holds 81.9% of the company, and other stakeholders to find a solution.

This comes after Felda's failed attempt in 2021 to take FGV private at RM1.30 per share, acquiring only 81% of shares, below the 90% needed for compulsory acquisition. To address the shortfall, FGV proposed a bonus issue of Islamic redeemable preference shares, but as of August 2024, it was still awaiting government approval.

FGV’s share price closed unchanged at RM1.22 a share on Tuesday, giving it a market capitalisation of RM4.4 billion. The stock is up 7% this year.