Malaysian palm oil producer FGV jumps near 25% after surviving Felda's bid

KUALA LUMPUR: Shares in Malaysia's FGV Holdings Bhd jumped nearly 25% on Tuesday in their biggest single-day jump in more than five years, after state-owned Felda failed in its bid to take the world's largest crude palm oil producer private.

The Federal Land Development Authority, or Felda, in December proposed a mandatory takeover offer after agreeing to a deal to increase its stake in FGV.

Felda only obtained 81% equity interest in FGV by Monday evening when the offer deadline to take the company private ended, according to an exchange filing later that day.

Felda had intended to take the company private, which required it and parties acting in concert to hold at least 90% of FGV shares following the takeover offer, Felda's offer document in January showed.

FGV's stock jumped 24.6% in early trade, its largest intraday jump since Sept. 14, 2015.

Both FGV and Felda did not immediately respond to requests for comments.

FGV's independent directors had in January urged investors to reject the takeover bid, saying its offer price of 1.30 ringgit ($0.3161) was unfair, though an external adviser called it reasonable.

The plantation giant listed on the Kuala Lumpur Stock Exchange in 2012, as an investor favourite at an offer price of 4.55 ringgit ($1.13) per share in what was hailed as the world's second largest IPO after Facebook.

But shares have since tumbled as the company grappled with financial and governance issues.