FGV top active stock on boardroom tussle
KUALA LUMPUR: Felda Global Ventures Holdings Bhd (FGV) was the top active stock on Bursa Malaysia yesterday, shedding 6.36 per cent as a boardroom tussle at the company heats up with a proposal to remove Group President/Chief Executive Officer, Datuk Zakaria Arshad.
FGV, which popped up in the top 10 active list in the morning, lost 11 sen to RM1.62 at closing with 96.74 million shares transacted.
The board of FGV has asked Zakaria Arshad and group chief financial officer, Ahmad Tifli Mohd Talha to go on immediate leave due to an investigation into payments by a subsidiary.
The leave of absence commencing June 6, is pending investigations into certain transactions by Delima Oil Products Sdn Bhd, the subsidiary.
Zakaria was appointed CEO on April 1 last year.
“The leave of absence commencing June 6, is pending investigations into certain transactions by Delima Oil Products Sdn Bhd, the subsidiary,” the company said in a filing to Bursa Malaysia yesterday.
FGV, said however, business would continue as usual.
The company said in the interim, a Board Executive Committee, comprising two directors, namely Datuk Dr Omar Salim and Datuk Mohd Zafer Mohd Hashim, together with the head of logistics cluster Azman Ahmad, would take over responsibilities of the group president/CEO.
The Board has also appointed group financial controller, Plantation Sector, Aznur Kama Azmir as the Interim group chief financial officer.
It said further announcements would be made in the event of material developments on this matter.
Meanwhile, Zakaria, in an online video posting by a local newspaper following an interview outside the Felda building here, said he did not expect things to turn out the way it did.
“A board director and the company secretary handed me a letter asking me to go on leave as group president/CEO and I had been relieved of all duties.
“(I will take leave) until the FGV Board contacts me,” he added.
He also said he did not have a problem if the process is correctly followed.
“I saw it coming (the leave of absence). I did not expect it to get to this stage as the issue is not big. I have to face this openly and defend myself,” he added.
FGV, under Zakaria and Isa’s stewardship, returned to profitability in the first quarter ended March 31, 2017, posting a net profit of RM2.46 million in contrast to the net loss of RM81 million in the same period a year ago.
Revenue grew 15 per cent to RM4.32 billion from RM3.76 billion. — Bernama
FGV