FGV told to clarify if Rajawali refunded RM654m deposit

Felda Global Ventures Holdings (FGV) has been asked to clarify if the US$174.5 million it paid to Rajawali Group in 2015 has been refunded.

This was posed by PKR vice-president Rafizi Ramli following FGV's termination of an agreement to acquire a 37 percent stake in Eagle High Plantations Tbk from the group.

FGV was required to pay US$174.5 million to Rajawali as a deposit and the sum, including interest, is to be refunded if the deal was terminated.

The sum amounted to RM654 million (US$1=RM3.70) based on the exchange rate when the heads of agreement was signed in June 2015.

"FGV confirmed the termination of the proposed share acquisition in a notice to Bursa Malaysia on Dec 23, 2016.

"As the matter took place at the end of 2016 and FGV's fourth quarter financial results for 2016 has yet to be released, there is no information on the RM654 million deposit," Rafizi said in a statement today.

Rafizi, who is also Pandan MP, asked FGV to clarify if it had indeed paid the deposit as outlined in the heads of agreement and whether it was returned and when.

Rafizi said precautionary measures had to be taken to ensure that the deposit would not be misused.

FGV had in June 2015 announced it planned to purchase a 37 percent stake in Eagle High Plantations Tbk for a total of US$680 million.

FGV, a listed company, came under criticism over the deal which was seen as overpriced.

The deal was eventually terminated but Federal Land Development Authority (Felda), a government agency, stepped in instead.

Felda offered US$505.4 million to purchase the same stake in Eagle High Plantations Tbs, a 26 percent discount from FGV's initial offer.

Rafizi said FGV's deposit should be returned to the company and should not be used to partially foot Felda's acquisition cost of the 37 percent stake.

Felda controls a 21.25 percent stake in FGV.

On a separate matter, Rafizi said he expected the retail price of RON95 fuel to remain unchanged at RM2.30 per litre for March.

He attributed this to the fact that Brent crude oil price has largely remained stable at US$65 per barrel while the ringgit's strength against the US dollar has generally remained the same in February.

Monthly fuel prices in Malaysia are determined by the Automatic Pricing Mechanism (APM) which is based on the Mean of Platts Singapore and the average ringgit strength in the preceding month.- Mkini