FGV denies allegations by Anak on corporate exercise

KUALA LUMPUR: FGV Holdings Bhd has refuted allegations by Anak, a non-governmental organisation (NGO) representing Felda settlers, concerning a corporate exercise leading to its listing in 2012.

It said yesterday in a statement that the allegations in a video, which was posted on YouTube, had caused much confusion and concern.

Among the inaccuracies highlighted in the video was that FGV Holdings had bought a 51% stake in Felda Holdings Bhd (FHB) from Koperasi Permodalan Felda (KPF) for RM2.2bil.

It pointed out the video also alleged the price tag of RM2.2bil was far below the market value of the 51% block in Felda Holdings and also, that it was far less than the RM6bil paid to Felda for a 49% stake in the same company.

“This is incorrect.

“It is apparent that there is some misunderstanding and confusion involving different transactions that occurred at different times,” it said.

Prior to its listing in 2012, FGV was a unit of Felda. However, FHB was jointly-owned by Felda and KPF, with the former holding 49% and the latter, 51%.

In 2009, as part of an internal restructuring exercise, FGV acquired Felda’s 49% stake in FHB for RM1.57bil cash, and not RM6bil as reported.

In 2013, after its listing, FGV acquired the remaining 51% stake in FHB from KPF for RM2.2bil cash.

Following FGV’s listing in 2012, Felda raised RM5.5bil as part of its offer for sale of shares in FGV.