FGV Holdings Bhd has clarified that the statement issued by the National Felda Settlers’ Children Association (ANAK), a non-governmental organisation representing the Federal Land Development Authority (Felda) settlers, is incorrect and has caused confusion and concern.
In the video posted on YouTube, ANAK said FGV had acquired a 51% stake in Felda Holdings Bhd (FHB) from Koperasi Permodalan Felda Malaysia Bhd (KPF) for RM2.2 billion.
“It was further alleged that the RM2.2 billion was far below the market value of the 51% block in FHB, and that it was far less than the RM6 billion paid to Felda for a 49% 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 yesterday. The plantation company said 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% andthe latter 51%.
In 2009, as part of an internal restruturing exercise, FGV acquired Felda’s 49% stake in FHB for RM1.57 billion cash, and not RM6 billion as reported.
In 2013, after its listing, FGV acquired the remaining 51% stake in FHB from KPF for RM2.2 billion cash.
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 advisors and approved by the boards and shareholders of FGV, KPF and Felda.
Furthermore, all the transactions described 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 was related to the sale of the 51% stake in FHB by KPF to FGV at a price of RM2.2 billion, or RM19.61 per share, in 2013.
However, he said Felda’s statutory bodies, which also sold 49% of its holding in FHB, received a payment of RM5.7 billion, or RM52 per share, from FGV.
He said stock and research firms TA Securities Holdings Bhd and Kenanga Research estimated the market value of the 51% stake in FHB should be priced at between RM3.2 billion and RM4.08 billion. — Bernama