PAS has asked the Terengganu government to sell off all of its Felda Global Ventures (FGV) shares before their value gets any lower.
According to Naraza Muda, PAS' Felda affairs bureau chief, the state government owns 16,515,000 shares of FGV, initially worth RM75.14 million through two corporations, Yayasan Islam Terengganu and PTB ventures.
Shares which continue to depreciate, being valued at RM1.90 per share, compared to its initial public offering (IPO) price of RM4.55 in 2012.
“If the Terengganu government were to sell all of its current shares in FGV, it would save RM31.38 million and only suffer a loss of RM43.77 million of its initial investment of over RM75 million,” said Naraza in a statement.
He noted that another institutional buyer, Employees Provident Fund (EPF) has divested all of its 184,746,000 FGV shares or 5.06 percent in the company as the stock's value continue to slide.
Similarly, Naraza advised the state government not to further risk public funds on such an investment, at the expense of Terengganu citizens.
There have been speculations that FGV was going to be privatised, which has been denied by the group.
Felda chairperson Shahrir Abdul Samad was reportedly quoted as saying that there was a possibility of delisting FGV from Bursa Malaysia.
PKR vice-president Rafizi Ramli then claimed that plans to delist FGV will costs RM7.8 billion in losses.- Mkini