Felda: The smell of easy money (Part V)

by Dr R@28

Part 1:    FELDA – The smell of easy money

Part 2:    FELDA – The smell of easy money

Part 3:    FELDA – The smell of easy money

Part 4:    FELDA – The smell of easy money

• The government excuse for pushing FGV, FH and KPF to go through a merger and a USD2 billion IPO exercise is that they want to improve the settlers well being. They alleged that they want to improve the wealth of KPF members whom on average currently owns only 5,000 shares by operating business in the international environment. They want to unlock the value of Felda. What an utter nonsense excuse. In reality it is about raising money with the intention of investing in business outside the current Felda loop. By doing an IPO a lot of people will make money. It will start with the consultants, the merchant bankers and eventually the powers behind the money.

• Reality is that KPF can do the same without FGV but FGV cannot do it without KPF. The reason being KPF has 220,000 members who are landowners and is the key in FGV game plan. In one part, they plan to lease the land from each settler and run it as an estate much like SD, Guthrie etc. Without KPF, it would be impossible for FGV to lease the land. They cannot go down and negotiate with 220,000 members. With one pen stroke they can lease the land via KPF. Who actually needs the money from the IPO? Is it Felda Holding or KPF? No it’s FGV. The land leasing arrangement and turning it into a mega estate is the smallest objective of FGV. Their plan is to go global and to do that they need money. They cant raised money, as they don’t have decent amount of assets

• Fact remains that if KPF wants to do the same exercise without FGV it can be done with ease. They don’t need FGV. They have the members who have land and they own 51% of FH. At the moment they seem contented with their current returns and dividends offered to the members. The main issue is why didn’t KPF go for IPO without FGV. They were advice to do so by the consultants and had considered the options seriously. Unfortunately Felda-A was not happy of the proposed game plan. The politicians were equally upset, as they are not able to reap the benefits in the whole process. Hence they decided to infiltrate the board and  “educate” the members on the need to list FGV. Quite obviously Isa Samad is not the brain behind this whole operations. He is just an “adjutant” in this whole process. Should we talk about the brains and the personalities in the next part and how much they expect to make directly and indirectly? Let me ponder about it. ?