Kuala lumpur: The takeover of FGV Holdings Bhd by the Federal Land Development Authority (Felda) marks a consolidation move to strengthen its operations moving forward. Felda chairman Datuk Seri Ahmad Shabeery Cheek said the agency’s structure will be realigned with FGV’s to eliminate overlapping functions in the future.

According to BERNAMA News Agency, Felda chairman Datuk Seri Ahmad Shabeery Cheek explained that both Felda and FGV have their own hospitality and cooperative departments, each with its chief operating officer (CEO). He raised the question of whether separate CEOs are necessary or if one CEO should oversee both departments. This move is seen as an opportunity to reorganize and restructure Felda and FGV without being constrained by Bursa Malaysia’s regulations. Ahmad Shabeery emphasized this as a crucial step toward a better future for Felda.

Felda acquired more than 90 percent of FGV’s shares through a voluntary takeover offer, a move expected to lead to a more sustainable and focused Felda Group. This acquisition aligns with Felda’s aspirations in implementing its Strategic Plan and Direction for 2025-2030.

The takeover offer was initiated in 2020 after Felda increased its stake in FGV from 33.66 percent. This increase was achieved by purchasing shares from Retirement Fund (Incorporated) (KWAP), Malaysia’s pension fund for civil servants, and Urusharta Jamaah, an asset management company owned by the Minister of Finance (Incorporated), for RM658 million.

FGV, a Malaysian-based global agribusiness and food company, was initially listed in 2012 at RM4.55 per share, raising RM10.5 billion in one of Malaysia’s largest initial public offerings (IPO). However, the share price has significantly declined since then.