FGV sues ex-directors and officers for RM514m

Felda Global Ventures Bhd (FGV) has filed a suit against 14 of its former directors or executives to recover RM514 million.

The sum was to cover the losses due to the 2014 acquisition of Asian Plantation Limited (APL) – a Singapore-based company with assets in Sarawak but listed on the London Stock Exchange.

According to a filing to Bursa Malaysia today, the company has accused the defendants of failing to discharge their respective fiduciary duty, duty of fidelity and/or duty to exercise reasonable care, skill and diligence.

The 14 individuals are:

• Mohd Emir Mavani Abdullah – former group president/CEO and non-independent non-executive director
• Farisan Mokhtar – former senior vice-president of business development for downstream cluster
• Rasydan Alias Mohamed – former senior general manager, downstream cluster
• Ahmad Tifli Mohd Talha – former CFO
• Mohd Isa Abdul Samad – former chairperson and non-executive director
• Omar Salim – former non-independent non-executive director
• Noor Ehsanuddin Mohd Harun Narrashid – former independent non-executive director
• Yahaya Abd Jabar – former senior independent non-executive director
• Faizoull Ahmad – former non-independent non-executive director
• Ismee Ismail – former independent non-executive director
• Wan Abdul Aziz Wan Abdullah – former independent non-executive director
• Sulaiman Mahbob – former independent non-executive director
• Nozirah Bahari – former non-independent non-executive director
• Fazlur Rahman Ebrahim – former independent non-executive director

FGV had acquired APL for a total cash consideration of £120mil, or about RM628mil at the time, at a 5.4 percent premium over APL's weighted average price.

Last year, FGV began investigating the deal due to, among others, allegations that much of the land acquired by APL was unsuitable for oil palm plantations.

FGV was listed on the KLSE in 2012. It was the second biggest IPO in the world that year, with a reference price of RM4.55.

The prospectus was launched by then prime minister Najib Abdul Razak.

Soon after the IPO, FGV's share price went on a steady downtrend which has persisted until today. FGV's share price closed at RM1.17 today. - Mkini