Felda to form special unit for settlers to invest in FGVH

The proposed listing of FGVH will proceed as planned, says Felda chairman Mohd Isa Abdul Samad.

KUALA LUMPUR: The Federal Land Development Authority (Felda) has proposed to set up a special-purpose vehicle (SPV) to ensure the settlers benefit directly from Felda Global Ventures Holdings Bhd’s (FGVH) proposed listing and all future profits from the listed business.

This replaces Koperasi Permodalan Felda’s (KPF) initial proposed role.

KPF has about 220,000 members, of which 112,635 are Felda settlers and the rest employees and children of settlers.

Felda chairman Mohd Isa Abdul Samad said the action by eight Felda settlers to block KPF’s participation in FGVH’s proposed listing with interim injunction barring any transfer of shares to FGVH, has blocked the participation of other KPF members.

“With KPF effectively out of the picture, other KPF members will not be able to participate in the proposed listing of what would have been one of the largest producers of crude palm oil in the world,” he told reporters ahead of a briefing session with the settlers.

He said the proposed listing of FGVH, however, would proceed as planned.

Felda settlers, via KPF, hold 51% stake in Felda Holdings Bhd (FHB) and FGVH 49%.

Prior to the proposed setting up of SPV, the proceeds from the proposed listing and potential profits would be channelled via KPF.

Deputy Minister in the Prime Minister’s Department Ahmad Maslan had earlier said KPF would be the single largest shareholder of FGVH with a 37% stake.

Minority view

Following the injunction, KPF’s extraordinary general meeting today was cancelled for the second time.

“I want to be very clear that Felda wants KPF to participate in the proposed listing, but it is unfortunate that this small group, influenced by the National Felda Settlers Children’s Association (Anak), has chosen this path.

“We are disappointed at their repeated attempts to force their minority view against the wishes of the majority of hard-working KPF members and block its members from this opportunity,” he said.

Felda, the statutory body under the Prime Minister’s Department, has a 100% stake in FGVH.

Meanwhile, Isa reiterated that none of the settlers’ land would be touched for the proposed listing.

In addition, their holdings in KPF would remain as they are, he said.

-Bernama