FELDA MOUNTAIN OF CORRUPTION STARTS TO RUMBLE: FGV DENIES PAYING BELOW MARKET VALUE FOR STAKE IN FELDA HOLDINGS

PETALING JAYA – FGV Holdings Bhd (FGV) has refuted allegations made by Persatuan Anak Peneroka Felda Kebangsaan (Anak), a non-governmental organisation representing Felda settlers, that it paid below market value for Felda Holdings Bhd (FHB) in 2012.

In a YouTube video posted on June 29, Anak alleged that FGV had acquired a 51% stake in FHB from Koperasi Permodalan Felda (KPF) for RM2.2 billion.

It also alleged that the RM2.2 billion was far below the market value of the 51% stake in FHB and also, that it was far less than the RM6 billion paid to Felda for a 49% stake in the same company.

“There are several points in the statement which are incorrect and have caused much confusion and concern. It is apparent that there is some misunderstanding and confusion involving different transactions that occurred at different times,” said FGV in a statement.

The group explained that prior to the listing in 2012, FGV was a wholly owned subsidiary of Felda. FHB was jointly owned by Felda and KPF with 49% and 51% stake, respectively.

“In 2009, as part of an internal restructuring exercise, FGV acquired Felda’s 49% stake in FHB for RM1.57 billion cash, and not RM6 billion as reported.”
Upon listing, FGV also acquired the remaining 51% stake in FHB from KPF in 2013 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.”

FGV stressed that all the transactions were guided by independent advisers and approved by the boards and shareholders of FGV, KPF and Felda. “Furthermore, all the transactions described above were appropriately and publicly disclosed.”

– Sundaily

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