Felda in­curs RM2b in un­re­alised losses from FGV di­rect stake

New Straits Times - - News / Story Of The Day -

KUALA LUMPUR: The Fed­eral Land Devel­op­ment Au­thor­ity (Felda) has in­curred un­re­alised losses of RM2.06 bil­lion from its 21.25 per cent di­rect stake in Felda Global Ven­tures Hold­ings Bhd (FGV).

Deputy Min­is­ter in the Prime Min­is­ter’s Depart­ment Datuk Razali Ibrahim said the losses as of June 30 were not recorded in Felda’s fi­nan­cial state­ments as FGV was clas­si­fied as an as­so­ciate of Felda.

“This is in line with MFRS 128: In­vest­ments in As­so­ciates and Joint Ven­tures.

“Felda’s hold­ings in FGV is recorded as an ‘in­vest­ment in as­so­ciate’, where FGV is recorded at a cost of RM3.38 bil­lion in Felda’s fi­nan­cial state­ment for the year end­ing Dec 31, 2016.

“FGV has paid RM328.33 mil­lion to Felda as div­i­dend on FGV hold­ings.”

Felda, Razali said, had a to­tal stake of 33.67 per cent in FGV, in­clud­ing in­di­rect hold­ings of 12.42 per cent, held via its whol­ly­owned sub­sidiary Felda As­set Hold­ings Com­pany Sdn Bhd.

Razali said this in a writ­ten re­ply to Dr Ko Chung Sen (DAP-Kam­par) in Par­lia­ment yes­ter­day.

Ko had asked the prime min­is­ter to state the amount Felda had in­vested in FGV and Felda In­vest­ment Cor­po­ra­tion Sdn Bhd (FIC), the value of the in­vest­ment and the to­tal profit or losses.

As of June 30, Razali said, FIC, a wholly-owned sub­sidiary of Felda, had been given a cap­i­tal in­jec­tion of RM500 mil­lion.

He said the gov­ern­ment had no plans to pri­va­tise FGV as it was listed on Bursa Malaysia and sub­ject to the reg­u­la­tion of the Se­cu­ri­ties Com­mis­sion.

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