KUALA LUMPUR — July 11, 2018: FGV Holdings has clarified that the statement issued by the National Felda Settlers’ Children Association (Anak), a non-governmental organisation representing Felda settlers, is incorrect and has caused confusion and concern.
In a video posted on YouTube, Anak stated that FGV had acquired a 51 per cent stake in Felda Holdings Berhad (FHB) from Koperasi Permodalan Felda Malaysia Berhad (KPF) for RM2.2 billion.
It was further alleged that the RM2.2 billion was far below the market value and that it was far less than the RM6 billion paid to the Federal Land Development Authority (Felda) for a 49 per cent stake in the same company.
“This is incorrect. It is apparent that there is some misunderstanding and confusion involving different transactions that occurred at different times,” FGV said in a statement today.
The plantation company said that prior to its listing in 2012, it was a wholly-owned subsidiary of Felda. However, FHB was jointly owned by Felda and KPF, with the former holding 49 per cent.
In 2009, as part of an internal restructuring exercise, FGV acquired Felda’s stake in FHB for RM1.57 billion cash and not RM6 billion as reported.
In 2013, after its listing, FGV acquired the remaining 51 per cent in FHB from KPF for RM2.2 billion. Following FGV’s listing in 2012, Felda raised RM5.5 billion as part of its offer for sale of shares in FGV.
“All the transactions were guided by independent advisers and approved by the boards and shareholders of FGV, KPF and Felda,” said the statement.
Furthermore, all the transactions were appropriately and publicly disclosed.
It was reported that Anak had lodged three reports with the Malaysian Anti-Corruption Commission over alleged financial mismanagement in Felda involving its former Chairman Tan Sri Mohd. Isa Abdul Samad and several other entities.
Anak deputy president Mohd. Nasaie Ismail said the first report related to the sale of the 51 per cent stake in FHB to FGV for RM2.2 billion or RM19.61 per share.
He countered that TA Securities and Kenanga Research had estimated the market value of the stake to be priced between RM3.2 billion and RM4.08 billion. — Bernama