![](http://www.themalaysianinsider.com/images/uploads/logomix/felda.jpg)
Publicity chief Tony Pua told a press conference FPI "has been forced to sign a concession contract" in March with FGVH where all save a small quantity of CPO used by the processor's own subsidiaries will be sold to FGVH.
The listing prospectus states that FGVH will then "resell all of this CPO to third-party customers, such as refiners and traders in Malaysia and abroad, to our joint ventures."
Pua (picture) said this arrangement was "clearly to enable FGVH to earn a margin from the sale of CPO to final customers."
"FGVH adds no value to the process except to cannibalise part of the profits which would otherwise be attributable to FPI," he said, adding that the FELDA Investment Co-operative (KPF), which is 70 per cent owned by settlers, will be "the biggest loser."
FPI's latest audited accounts show it made RM9.5 billion and RM204 million in revenue and profits respectively in 2010.
![](http://www.themalaysianinsider.com/images/uploads/mugshots/tony-pua-july20.jpg)
The government has been accused of fleecing settlers in the FGVH listing set to take place on June 28, the second largest in the world this year raising up to RM10.5 billion, as they will be offered just 2.5 per cent of the enlarged stakeholding in the world’s third-largest palm oil planter.
PKR had questioned last month the 420 million shares set aside for a list of Bumiputera firms approved by the Ministry of International Trade and Industry (MITI) while the 112,000 FELDA settlers, who have been promised improved earnings, have only been handed 91 million.
The opposition party claimed that the allocation, according to a preliminary prospectus available from the Securities Commission, was “unfair” to settlers and only beneficial to “rich Bumiputeras.”
It cited MITI guidelines obtained from its official website stated that in order to qualify as a MITI-approved Bumiputera investor, an individual must have at least RM3 million in assets, and if it is a company (100 per cent Bumiputera owned), its assets must be worth RM10 million.
Pua has also claimed Putrajaya would be “fleecing” FELDA settlers of a whopping RM8.8 billion through the leasing of their land under the highly-anticipated public listing which is set to raise RM10.5 billion.
Pua claimed that according to the FGVH draft listing prospectus, not only would KPF not get any ownership of FGVH shares once it gets listed, the co-operative’s existing business and income would be “cannibalised” by FGVH.
He also alleged the leasing of plantation land to FGVH would be at “dirt-cheap” prices of RM1,490 per hectare or RM530 million annually instead of RM2,600 per ha or a shortfall of RM394 million per year across the 99-year lease.
The planned June 28 listing will create the world’s third-largest palm oil operator with a market capitalisation of RM16.6 billion.
The IPO will be the largest in Asia since February 2011 and the second biggest this year behind social media network Facebook’s float which raised US$16 billion (RM49.6 billion).
Putrajaya is forging ahead with FELDA’s controversial public listing despite criticism from some settlers and the opposition who claim that it will shortchange some 112,000 settlers nationwide.
Prime Minister Datuk Seri Najib Razak has assured FELDA settlers that the listing would yield profits, and has announced a RM1.69 billion windfall for all settlers and staff throughout the country ahead of the FGVH listing.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.