Felda settlers could lose out in RM2.2 billion deal

This is from The Malaysian Insider

• Felda Global Ventures Holdings Bhd buyout of 51% stake in Felda Holdings Bhd 
• critics say is detrimental to its owners, Koperasi Permodalan Felda (KPF)
• RM2.2 billion deal would work to FGVH’s favour 
• KPF which represents 113,000 settlers would lose its cash cow, uncertain future
• in the long run, they are foregoing more profits 
• lucrative 15% to 16% annual dividends given to shareholders.
• KPF holds 51% stake in Felda Holdings while FGVH holds 49%
• 80% of KPF’s strength comes from FHB. Losing 80% projects uncertain future
• bulk of RM2.2 billion would be used to invest in existing Felda subsidiaries
• doubts investments would reap its current rate of high profits.
• FGVH’s decision to take control raised questions over the firm’s motive 
• settlers' livelihood would now depend on how well FGVH does in the market
• buyout of FHB would enable FGVH to create an interference-free environment 
• FGVH wouldn’t have to deal with the likes of Anak anymore
• In 2011 a pre-condition to FGVH’s IPO meant settlers 61% share in FGVH
• KPF decided to reject the offer
• in 2011 KPF had a chairman who was attached to the settlers 
• chairman Datuk Zulkifli Wahab granted a leave of absence in December 2011 
• settlers’ simplistic mindset meant the acquisition was a done deal
• “those who seek immediate gratification would want to cash out,” 
• officially done during KPF’s EGM on October 27
• reps chosen to attend the meeting would be FGVH supporters
• this buyout is a betrayal toward the Malays

Oh well. Why are they so keen on buying out the Koperasi? Maybe the FGVH guys should meet with some of the Bloggers who understand stuff like this and explain what it is all about. (Which I think they will not.)

For example in this story by Malaysian Insider they dont say clearly who is the major shareholder of FGVH itself (which is a listed company). This is where OutSyed The Box comes in :) The Top 10 shareholders of FGVH (from their Website) are as follows :

That National Bank of Qatar is interesting. Siapa pi jemput depa? I dont see the Koperasi Felda here as a major shareholder of FGVH. Yet Koperasi are expected to sell their 51% stake in the plantations to FGVH.

So after selling off 51% of Felda plantations (Felda Holdings Bhd) to FGVH, what sort of corporate assets will the 113,000 Koperasi members have left over ? Remember these are the actual Felda settlers. 

In other words what will they do with the RM2.2 Billion they are getting paid? Part of it will be distributed to the 113,000 Koperasi owners directly - they may use it to buy cars, go on the umrah, buy TVs etc. Or buy houses and properties as well.

A bulk of it will be invested by the Koperasi's managers in downstream activities being undertaken by existing Felda subsidiaries. 

The workers will still be working their 10 acre plots. The 10 acre plots of land are still legally theirs. They will still sell their FFB (Fresh Fruit Bunches) to Felda Holdings. Operation wise and work wise nothing will change. 

The only change is the Felda settlers are NO MORE shareholders of Felda Holdings which will buy their output. The new 100% owner of Felda Holdings will be Felda Global Ventures Holdings  (which is headed by a CEO of debateable paper qualifications or something). 

And the Felda settlers are not major shareholders (through their Koperasi) of Felda Global Ventures Bhd. As you can see in the Top 10 shareholders' list above tak ada pun Korepasi Felda. 

What if Felda Global drops their purchase prices of FFBs from the settlers (for whatever reason) say six months before the next GE14 ?

Or the fertiliser subsidies are reduced say six months before the next GE14 ?

58 out of UMNO's 88 Parliamentary seats are located in Felda majority areas. Thats a lot of eggs in one basket.  UMNO should have a special 'Jabatan Felda' to watch closely over Felda. This is the Fixed Deposit. Not just Sabah and Sarawak.

So who comes out with these really brilliant ideas?