POSITIVE CATALYSTS
FGV share price rises on news CEO may return to group, chairman’s pledge
INVESTORS have reacted well to news of Datuk Zakaria Arshad possibly staying on as Felda Global Venture Holdings Bhd (FGV) president and group chief ecutive officer, and new chairman Datuk Azhar Abdul
Hamid’s pledge to turn around the company. FGV shares closed seven sen higher to RM1.71 yesterday.
DATUK Zakaria Arshad must wait at least one more day to know whether he will stay on as Felda Global Ventures Holdings Bhd (FGV) president and group chief executive officer (CEO).
Yesterday, news ran rife that Zakaria may return to the plantation group.
The anticipation had pushed FGV’s share price up by as much as 10 sen, or more than five per cent, in early trade yesterday.
Investors also reacted warmly to new chairman Datuk Azhar Abdul Hamid’s pledge to turn the company around and resolve issues within the group.
The stock eventually settled the day with a 4.27 per cent gain, or seven sen, to RM1.71 on a volume of 19 million shares.
Azhar started his first day as chairman by attending a preliminary meeting with key management staff yesterday.
He was greeted by staff at the entrance of Menara Felda, here, upon his arrival at 8.15am.
Federal Land Development Authority (Felda) director-general and FGV board member Datuk Ab Ghani Mohd Ali and officerin-charge Datuk Khairil Anuar Aziz accompanied Azhar to level 45 of the building for the preliminary meeting.
Zakaria was also at Menara Felda yesterday, giving his final testimony in the domestic inquiry involving him and three other officials.
Before leaving Menara Felda, Zakaria told reporters the board of directors would determine his fate in the company.
“I do not know the decision yet (and) I do not want to jump the gun but I hope, God willing, everything will turn out okay.
“I certainly hope the decision will favour me but if it is fated to be otherwise, then I will have to accept it.
“I will leave it to their (board of directors) wisdom, including the new chairman, to assess this case,” he said, adding that the internal probe had lasted about an hour.
Zakaria, FGV group chief financial officer Ahmad Tifli Mohd Talha, Delima Oil senior general manager Kamarzaman Abd Karim and FGV Trading CEO Ahmad Salman Omar are facing a domestic inquiry over the outstanding debt of Safitex Trading LLC with Delima Oil.
All four have been placed on leave of absence since June 6.
The inquiry was initiated in July after FGV’s board of directors on June 14 issued showcause letters to Zakaria and Ahmad Tifli.