Felda arm listing still on

It’s important for the settlers to have stake in Felda Global Ventures, sources say
PETALING JAYA: Despite the controversy surrounding the directive for Federal Land Development Authority (Felda) general manager Datuk Dzulkifli Abd Wahab
to go on leave, the Government is not wavering on its plan to list
Felda Global Ventures (FGV) on the stock exchange next year, sources
said.
The sources added that the listing exercise was still on because of its importance to Felda settlers.
The
listing would turn Felda settlers into owners of the listed FGV via the
settlers' co-operative, Felda Investment Co-operative (KPF). “The
listing is a game-changer for the settlers as they would have a
controlling stake in a listed plantation giant.”
Sources also
said that the KPF EGM to be held on Jan 5 to vote on the matter would
likely see the majority of representatives vote in favour of the deal,
which would pave the way for FGV's listing in March or early April.
Over
the weekend, an online news portal reported that Dzulkifli was asked to
go on leave for eight months. The article stated that the move was the
result of differing views between Dzulkifli and KPF's new chairman, Tan Sri Isa Samad, who replaced the former a few months ago.
The news portal added that Dzulkifli was believed to be against the proposed listing of FGV.
Another
recent online media report stated that KPF's removal of some key
members of Felda's new top brass from its board could be viewed as a
concerted attempt by certain quarters, such as the existing senior
management, to undermine the intial public offering (IPO).
The
listing of FGV is expected to raise some RM6bil in what could be
Malaysia's biggest IPO in 2012. By comparison, the biggest IPO so far
this year was Bumi Armada Bhd, which raised some RM2bil.
KPF owns 51% in Felda Holdings
while FGV, an entity wholly-owned by the Government, holds the
remaining 49%. Felda Holdings is considered a gem for its assets, which
include a 880,000 ha plantation landbank as well as profitable
agriculture and plantation-related businesses consisting of palm oil
mills, refineries, rubber factories, and manufacturing plants.
Under the proposed listing, settlers would swap their 51% stake in Felda Holdings via KPF for 61% control of FGV.
In
the first half of this year, Felda Holdings made RM314mil in pre-tax
profit on turnover of RM8.9bil. FGV's pre-tax profit for the first half
was RM167.8mil on RM1.98bil revenue.