Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

HK Type 4 license through Ballingal Investment Advisors Ltd. 

I'm a highly experienced sell-side analyst with in excess of 22 years of covering Asia Pacific equities, the past 19 years immersed in event strategies encompassing M&A risk arbitrage, directional long/short, stub trades and restructuring.  

My background also includes accountancy (liquidation/bankruptcy/receivership) earlier in my career and as a chief financial officer of a global commodity company based in the US and Mexico.

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

On the 1 November 2011, <a href="https://www.smartkarma.com/entities/fgv-holdings-bhd" target="_blank" data-smartkarma-citation="entities:2200:1" rel="noopener">FGV Holdings Bhd (FGV MK)</a> signed a Land Lease (LLA) Agreement with Federal Land Development Authority (FELDA), whereby 351,000 ha of FELDA’s land was leased to FGV for 99 years.
On the <a href="https://www.fgvholdings.com/press_release/official-statement-of-fgv-holdings-berhad-on-felda-land-lease-agreement/?pagen=2" target="_blank" rel="noopener">20 October</a> this year, FGV sought to clarify the LLA agreement following various ongoing news reports about the possible termination of the LLA.  FGV said FELDA had yet to contact FGV to negotiate matters regarding the LLA.
Under the terms of the agreement, termination of the LLA is allowed. However, it is understood FGV’s compensation would be assessed on the average profit/mature hectare for the entire leased land, multiplied by the loss of FGV’s future profits.
FGV currently manages 493,750 ha of land, therefore the LLA accounts for ~70% of FGV's plantation.
FGV followed up on the <a href="https://www.fgvholdings.com/press_release/official-statement-of-fgv-holdings-berhad-on-feldas-recovery-plan-termination-of-land-lease-agreement-lla/?pagen=1" target="_blank" rel="noopener">29 October</a> reiterating it had yet to receive a written notice from FELDA regarding the termination.
Led by Tan Sri Abdul Wahid Omar, who headed a special task-force - and who is also chairman of Bursa Malaysia - FELDA <a href="https://www.astroawani.com/berita-bisnes/felda-akan-ambil-tanah-dan-beli-kilang-dari-fgv-266002?fbclid=IwAR1M9Hmap92N5Tq_64AlsI-od2N1DZ6nOGOmKcooPzOLj-0chhwR_p0oMZo" target="_blank" rel="noopener">announced</a> on the 30 October the termination of the LLA. Two days prior, Datuk Sri Mustapa Mohamed - Minister in the Prime Minister Department for Economic Affairs - announced that the Cabinet had agreed to the recommendation (tabled by the task-force on the 14 October) to the termination of FELDA’s LLA with FGV.
<h3>The New News</h3>
FELDA announced a possible <a href="https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3112207" target="_blank" rel="noopener">mandatory takeover</a> of FGV at RM1.30/share. 
FELDA, which currently owns a 21.24% stake in FGV, entered into conditional sale and purchase agreements (SPAs) to buy the 6.1% and 7.78% stakes held by Kumpulan Wang Persaraan (Diperbadankan) and Urusharta Jamaah Sdn Bhd for RM658mn. Upon completion,  FELDA would hold 35.12%, which is above the 33% mandatory takeover offer threshold.
FELDA added that in conjunction with parties acting in converts (PACs), it would hold more than 50%. The names of these PACs were not made public. The conditions to the agreements are primarily one of funding and are expected to be completed within 3 months. 
FELDA intends to serve the mandatory offer notice on FGV once the SPAs have completed.
More below the fold.

On the 1 November 2011, FGV Holdings Bhd (FGV MK) signed a Land Lease (LLA) Agreement with Federal Land Development Authority (FELDA), whereby 351,000 ha of FELDA’s land was leased to FGV for 99 years.
On the 20 October this year, FGV sought to clarify the LLA agreement following various ongoing news reports about the possible termination of the LLA.  FGV said FELDA had yet to contact FGV to negotiate matters regarding the LLA.
Under the terms of the agreement, termination of the LLA is allowed. However, it is understood FGV’s compensation would be assessed on the average profit/mature hectare for the entire leased land, multiplied by the loss of FGV’s future profits.
FGV currently manages 493,750 ha of land, therefore the LLA accounts for ~70% of FGV's plantation.
FGV followed up on the 29 October reiterating it had yet to receive a written notice from FELDA regarding the termination.
Led by Tan Sri Abdul Wahid Omar, who headed a special task-force - and who is also chairman of Bursa Malaysia - FELDA announced on the 30 October the termination of the LLA. Two days prior, Datuk Sri Mustapa Mohamed - Minister in the Prime Minister Department for Economic Affairs - announced that the Cabinet had agreed to the recommendation (tabled by the task-force on the 14 October) to the termination of FELDA’s LLA with FGV.
The New News
FELDA announced a possible mandatory takeover of FGV at RM1.30/share. 
FELDA, which currently owns a 21.24% stake in FGV, entered into conditional sale and purchase agreements (SPAs) to buy the 6.1% and 7.78% stakes held by Kumpulan Wang Persaraan (Diperbadankan) and Urusharta Jamaah Sdn Bhd for RM658mn. Upon completion,  FELDA would hold 35.12%, which is above the 33% mandatory takeover offer threshold.
FELDA added that in conjunction with parties acting in converts (PACs), it would hold more than 50%. The names of these PACs were not made public. The conditions to the agreements are primarily one of funding and are expected to be completed within 3 months. 
FELDA intends to serve the mandatory offer notice on FGV once the SPAs have completed.
More below the fold.

FGV Holdings Bhd

FGV Holdings: Reading the Palm Fronds