Corporate settlers and peasant stakeholders

If an injunction by four Fedla settlers had proceeded, it could have revealed Felda's extensive deals.

COMMENT

The outcome of an injunction application by a four settlers to stop the Felda Global Ventures Sdn Bhd’s (FGV) listing is being watched closely by all quarters.

Why should these four people extend energy and time and assume the risks of being called traitors by applying for an injunction?

Although the injunction has now been withdrawn as Koperasi Permodalan Felda Malaysia’s (KPF) extraordinary general meeting has been cancelled indefinitely, the four settlers had a noble intention in applying for the injunction.

Well, greed can’t be the overriding objective. Because if it was greed, it would have been more profitable for the four to have sided incoming KPF (and unconstitutional) chairman Isa Samad, who’s been handpicked by the Prime Minister.

The aim of the injunction was to stop FGV taking over assets and shares belonging to KPF in Felda Holdings.

These people believed that the 350,000 hectares of land which Felda took was actually meant for settlers.

All the assets owned by KPF in Felda Holdings will be leased to FGV for the next 99 years.

They will no longer exercise control over the assets as their interests are all converted into shares.

Felda Holdings is 51% owned by settlers and 49% owned by Felda Global.

Pittance for settlers

These four people were willing to risk it all, because they believed settlers are being sold out.

This listing is the ultimate shortchanging of settlers.

The first occurred time settlers were shortchanged was when Felda withheld more than 300,000 hectares of land from them.

By assuming ownership of the land, Felda was able to become a planter itself. So we have the peasant settler and the corporate settler.

The corporate settlers have moved on to becoming fabulously rich while the peasant settler have remained relatively behind.

The peasant settlers get palliatives such as RM1,200 as yearly bonus which translates into RM100 per month.

Some would get RM400 per year which translates into RM30 a month – not even enough to buy a T-bone steak at Meatworks (an outlet allegedly operated by National Feedlot Corporation-linked Shahrizat Abdul Jalil’s family).

The peasant settler gets MRSM colleges, indoor stadiums, futsal stadiums and other social amenities but the value of these, pale in comparison with the amenities and wealth enhancing resources obtained by the corporate settler.

Will this be a buyout or share swap?

The corporate settler has moved on into oleo chemicals, downstream activities, hotels, sugar business.

These corporate settlers were even able to go into various businesses out of the capital created from ownership of the land which was supposed to go to the landless and jobless.

Why can’t the peasant settler be organized that same way?

The second took place when Felda listed its sugar refining business.

It made over RM800 million out of that IPO. How much did KPF make by virtue of owning 20% of the business? On paper it made RM300 million.

If KPF makes a paper gain of RM300 million and the RM300m is 20%, then the whole gain from the listing exercise should have been RM1.5 billion not RM800million as declared.

The proposed listing will see the merger of Felda Holdings with FGV. The smaller partner in terms of equity, FGV is buying out KPF who has 51%.

But curiosity remains as to the nature of the transaction between them. Does it involve an offer by FGV to buyout KPF at a certain price or will it involve just a share swap?

The writer is a former Umno state assemblyman and a FMT columnist.