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Friday, October 30, 2020

Felda's compensation to be less than what FGV expects - STF chairperson


Felda’s compensation to FGV Holdings Bhd following the termination of a land lease agreement (LLA) related to its estates will be less than the RM3.5 billion - RM4.3 billion anticipated by the company.

Chairperson of the special task force (STF) set up to address Felda issues, Abdul Wahid Omar today said the matter would be deliberated further with FGV’s inclusion.

“Felda will likely pay less than what FGV expects following the termination of the LLA,” he said at a media briefing here, in regard to a statement by FGV yesterday on the amount of compensation it expects to get.

Abdul Wahid added that the amount that will be paid to the plantation company would also include its 68 palm oil mills.

“The intention is to also take over the mills. We are not just talking about the plantation, but it must also come with the mills.

“So the mills are not subjected,” he stressed.

The mills, according to FGV via its recent statement, only represent 30 percent of the fresh fruit bunches.

The LLA refers to Felda-owned estates totalling 350,733 hectares that were leased to FGV for 99 years from Nov 1, 2011.

On Wednesday, Minister in the Prime Minister's Department (Economy) Mustapa Mohamed said in a statement that the termination of the LLA and issuance of sukuk worth RM9.9 billion by Felda were some of the proposals approved by the Cabinet to ensure its recovery.

Abdul Wahid also revealed Felda intended to divest its assets, both abroad and locally to ensure a smooth cash flow.

On this topic, Felda chairperson Idris Jusoh said the federal land development authority-owned assets in London, Kuching, Sabah and a number of hotels in the country.

“Before we dispose of these assets, we must consider the value. For example, we received an offer of £300 million for our asset in London. But we thought, maybe we should wait.

“Two or three years from now, maybe we can get a higher offer, £500 million. So perhaps it’s not the time for us to let go of our assets. When the time is right, when the price is right, we will,” he said.


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