Why force state governments to take up 11% of Felda IPO - Tony

The listing of Felda Global Venture Holding is supposed to turn the domestic powerhouse into a global player, but the move to ‘force’ BN state governments to take up 10.84 percent of FGVH’s shares has not sat well with Petaling Jaya Utara member of parliament Tony Pua.

Continuing his appraisal of FGVH’s prospectus, Pua pointed out that five BN-ruled states were provided "irrevocable undertakings" to subscribe the IPO shares.

Pahang and Sabah were given 5 percent respectively, Perak 0.4 percent, Terengganu 0.16 percent and Negeri Sembilan 0.28 percent.

“If indeed the demand for FGVH shares is so hot as described by the Prime Minister, why is it that these Barisan Nasional states are being asked or even forced to give 'irrevocable undertakings' to acquire such a substantial portion of the IPO shares on offer?” he asked.

According to Pua, the shares amounted to RM1.8 billion or 18.1 percent of the total fund FGVH planned to raised.

Pua, who heads DAP's national publicity bureau, had earlier questioned the government for letting off 60 percent stake in FGVH to foreign hands through the listing.

“Felda which is a statutory body already holds in trust the interest of all Malaysians and Malaysian states in FGVH, so why is there a need to ask for money from the Malaysian states which are by far poorer than the federal government?” he added.

Pua said the fund raised by BN states’ investment was not to fund FGVH’s business activities as they were acquiring the shares directly from Felda.

“which means that the RM1.8 billion raised will go to the Federal Government, and not the company!”

The most pertinent question about the whole episode, said Pua, was the urgency and desperation by the parties concerned to massively sell down its 60 percent stake in FGVH and cashing out from Malaysian states.

“Both the government and Felda have not responded to my earlier statement on what is the intended use of the RM5.5 billion that it will raise for itself from the sale of its shares in FGVH.

"The sheer lack of transparency does not bode well for Felda or FGVH as surely, the people will be convinced that there is more than it meets the eye,” he said.

--Harakahdaily