Respite for anti-IPO group: EGM to approve Felda listing cancelled

Koperasi Permodalan Felda Malaysia Bhd (KPF) has confirmed its extraordinary general meeting or EGM scheduled for Wednesday will be cancelled after being served an interim injunction by the Kuantan High Court.

"Of course, they have to abide by the ruling,” said Harris Abdullah, the counsel for ANAK, or the National Felda Settlers’ Children Association, which has been at the forefront of a campaign to stop the listing of Felda Global Ventures Holdings Bhd.

Some 1,200 KPF delegates were due to vote at the EGM on the proposal to divest the co-op's 51 percent stake in Felda Holdings Bhd and its 10 subsidiaries, which includes Felda Global. Had the proposal gone through, KPF would transfer its business assets to Felda Global.

In return, KPF would be given a 35% stake in the lasted Felda Global Ventures entity. Felda's board has previously announced plans to have the share sale completed and listed on Bursa Malaysia by May-June this year.

Cover up losses and provide Umno with a war chest for GE-13

According to ANAK, the listing would impoverish Felda settlers in the long-term. It also means taking Felda public and exposing the land settlement scheme open to foreign takeovers once it was on board the the Bursa, ANAK had said.

On February 17, the Kuantan High Court granted 5 KPF members the injunction against the Wednesday meeting. In their affidavit, the 5 KPF members had expressed concern that transferring the assets to the loss-making Felda Global Ventures would shortchange smallholders.

Opposition Leader Anwar Ibrahim has also revealed that Felda Global had racked up huge investment losses in the US and had to take a RM6billion loan from the Employees Provident Fund.

There is fear the listing was to help Felda Global cover up its losses and well as to provide some short-term gain for the settlers with syndicates hired to push the share price up briefly so as to create a feel-good factor ahead of the 13th general election.

With more than 100,000 settlers, Felda is a core source of rural votes for Prime Minister Najib Razak and his Umno party.

The PM's decision to appoint disgraced former Negri Sembilan chief minister Isa Samad to oversee Felda has also been sharply criticized as Isa had previously been suspended from Umno for corruption and money politics.

Malaysia Chronicle