FGV Audited Financial Statements 2020

59 SIGNIFICANT EVENTS DURING THE FINANCIAL YEAR (continued) (v) On 1 October 2020, the Board of Directors of the Company confirmed that the U.S. Customs and Border Protection (“CBP”) has placed a Withhold Release Order (“WRO”) on palm oil and palm oil products made by the Company and its subsidiaries and joint ventures on 30 September 2020. The Company emphasised that all issues raised have been the subject of public discourse since 2015 and the Company has taken several measures to correct the situation. The Company’s efforts are well documented and available in the public domain. (vi) On 15 October 2020, the Board of Directors of the Company informed that on 8 October 2020, the Company had communicated with the CBP to seek clarification on its investigation findings and on steps expected to be taken by FGV for the revocation of the WRO. Information around the CBP’s investigation findings is imperative to enable FGV to address and resolve any remaining gaps in its practices. (vii) On 13 October 2020, the Company had received an expression of interest from Perspective Lane (M) Sdn Bhd (“PLSB”) via a letter dated 12 October 2020. PLSB had expressed their interest to participate in the Company via an injection of plantation assets into the Company, for share consideration. PLSB would potentially become the single largest shareholder of the Company upon completion. The Board of the Company had decided on 15 October 2020 to deliberate upon the matter and had resolved to explore and evaluate the proposition. On 8 March 2021, the Board of Directors of the Company announced that this proposition would not be pursued any further due to the unconditional mandatory take-over from Federal Land Development Authority (“FELDA”) to acquire all the remaining ordinary shares in the Company which are not held by the FELDA and its persons acting in concert. (viii) On On 20 October 2020, the Company issued an official statement to clarify on FELDA Land Lease Agreement (“LLA”). On 20 October 2020, the Company issued an official statement to clarify on FELDA LLA. (ix) On 29 October 2020, the Company issued an official statement on FELDA’s recovery plan for the termination of LLA. (x) On 2 November 2020, the Company issued an official statement to reiterate that the Company had yet to receive a written notice from FELDA regarding the termination of the said LLA and its intention to take over the Company’s palm oil mills nationwide as announced by the Chairman of the FELDA Special Task Force on 30 October 2020. On 2 November 2020, the Chairman of the Company had written to the Chairman of FELDA informing that the notice to terminate the LLA in accordance with the terms and conditions of the LLA was still not forthcoming from FELDA up to that date and suggested FELDA to stop any further media releases on this matter and to discuss prior to releasing a joint statement on the agreed terms in accordance with the terms and conditions of the LLA. (xi) On 8 December 2020, the Board of Directors had received a notice from Federal Land Development Authority (“FELDA” or “Offerror”) that it has entered into the following agreements: 1) a conditional share purchase agreement with Kumpulan Wang Persaraan (Diperbadankan) for the purchase of 222,480,700 the Company Shares, representing approximately 6.10% equity interest in the Company for a cash consideration of RM289.2 million or RM1.30 per the Company Shares; and 2) a conditional share purchase agreement with Urusharta Jamaah Sdn Bhd for the purchase of 283,710,100 the Company Shares, representing approximately 7.78% equity interest in the Company for a cash consideration of RM368.8 million or RM1.30 per the Company Shares. 188 Notes to the Financial Statements For The Financial Year Ended 31 December 2020 FGV HOLDINGS BERHAD Audited Financial Statement 2020