Malaysia's FGV says shareholders urged to reject Felda's takeover offer

[KUALA LUMPUR] The non-interested directors of Malaysian palm oil giant FGV Holdings have recommended that shareholders reject an unconditional mandatory takeover offer by state-owned Felda, the firm said on Friday.

The advice was issued in an independent advice circular, FGV said in a statement.

Felda is the largest shareholder of FGV Holdings, but FGV has so far remained independent in its governance.

The acquisition will allow Felda to "obtain statutory control of FGV", and strengthen Felda's ability to control FGV's plantations, its downstream operations and its subsidiaries.

REUTERS