KUALA LUMPUR — Nov. 28, 2018: The interim Chief Executive Officer of FGV Holdings, Datuk Wira Azhar Abdul Hamid, is confident that the company has survived and gone through the most difficult part of a transformation exercise, including a major change in management.
Speaking to reporters after the announcement of FGV’s third quarter financial results today, Azhar said the future would thus be brighter for the agricultural and agro-commodities company.
“Personally, I strongly believe that our share price will not stay below RM1,” he remarked in response to a question if FGV shares would become a penny stock.
Its share price declined to an all-time low yesterday, closing nine cents or 8.26 per cent easier to RM1, erasing another RM330 million in market capitalisation.
With the ongoing transformation programme, Azhar is optimistic investors would start seeing value in what FGV is doing.
“So looking at what we are doing, the objective that we have in mind and remaining transparent would see us moving forward, I believe the trust level will also improve and that will be reflected in a better share price.”
In the last 12 months FGV undertook several changes including changing the composition of the board which now includes industry and other relevant experts. Azhar is also chairing the board.
According to Azhar, FGV expects the ongoing forensic investigations involving six transactions and/or investment decisions to be complete by the year’s end. Of the six, one or two legal action will be initiated.
Investigations have been completed on the acquisition into Asia Plantations Ltd., investments in FGV Cambridge Nanosystems Ltd. and the acquisition of Troika condominiums in the city.
FGV recorded its largest impairment amounting to RM788 million in the third quarter, much of it due to APL.
The company informed Bursa Malaysia that it posted a net loss of RM849.26 million in the third quarter ended last September 30, compared with a net profit of RM41.53 million a year ago. Revenue also fell to RM3.19 billion from RM4.14 billion. — Bernama