Another Eagle High Plantation deal may be hard to come by, says Najib

Former prime minister Najib Razak.

PETALING JAYA: Former prime minister Najib Razak today responded to A Kadir Jasin’s call for Indonesian billionaire Peter Sondakh to buy back shares in a company sold to Felda to help the ailing federal agency recover its money.

Yesterday, Kadir said the government could activate a “put option” which had been part of the deal when Sondakh sold a 37% stake in Eagle High Plantations (EHP) to Felda Ventures Holdings Bhd in 2015.

Kadir, the media adviser to Prime Minister Dr Mahathir Mohamad, said EHP had failed to get the Roundtable on Sustainable Palm Oil (RSPO) certification for all its plantations.

In a Facebook post, Najib said the put option, which would allow Felda to sell back its 37% to EHP at the original purchase price plus the 6% annual interest charge borne by EHP, could only be activated five years from the date the shares were purchased.

“I am made to understand that they (EHP) are working towards or have already obtained RSPO certification for other plantations.”

He said it would be a different matter if the RSPO certification was a pressing need.

However, he noted that Sondakh, who is reportedly a close friend of his, was among the richest men in Indonesia and would be able to fulfil the put option if Felda wished to pull out of the deal.

“The main question we need to ask ourselves is this: are there many opportunities to buy a 37% stake in plantations with young trees spanning 340,000 acres at just RM2.4 billion, complete with a put option which ensures we will profit after five years?”

Najib previously said that if palm oil prices recovered, Felda’s purchase of the stake in EHP would see it making a huge profit.

In the event that the put option is activated, Najib said, Felda would still gain as it would sell back its shares at the original purchase price plus 6% annual interest. - FMT