Felda Investment buys 49.45% stake in Encorp in RM239.72mil deals

PETALING JAYA: Felda Investment Corp (FIC), the investment arm of the Federal Land Development Authority (Felda), has bought out all the shares in Encorp Bhd held by two major shareholders for RM239.72mil.

The move, said observers, could make Encorp the listed property development vehicle of the Felda group, which owns large swathes of valuable landbank in major cities across Malaysia.
According to a Bursa Malaysia filing yesterday, FIC had acquired 49.45% of Encorp from Lavista Sdn Bhd and Pegang Impian Holdings Sdn Bhd via separate conditional sale and purchase agreements.

This will oblige FIC to extend a mandatory takeover offer for the shares, warrants and loan stocks that it does not own in Encorp at RM1.55, 55 sen and RM1.55 apiece, respectively.

Lavista is to dispose of its 29.85% stake, as well as 8.33 million five-year warrants and 16.66 million five-year 6% redeemable convertible secured loan stocks (RCSLS) with a nominal value of RM1 each to FIC for RM133.69mil cash.