Malaysia

Settlers’ co-op to discuss Felda IPO snub

Isa (centre) today said KPF will be left out of the listing exercise as negotiations would be too time-consuming. — Picture by Choo Choy MayIsa (centre) today said KPF will be left out of the listing exercise as negotiations would be too time-consuming. — Picture by Choo Choy MayKUALA LUMPUR, April 24 — The board of settler’s co-operative Koperasi Permodalan Felda (KPF) will discuss its absence from the proposed listing of Felda Global Ventures Holdings (FVGH) in a meeting tomorrow, said its chief executive Mazlan Talib.

This comes after Felda chairman Tan Sri Isa Abdul Samad said today that while KPF has finally agreed to the FGVH listing, there would not be enough time to discuss the terms and conditions before the target listing date of within the May-June period.

“We have not discussed it yet so I don’t want to comment on what the board’s stand is,” Mazlan said when contacted.

Under a new plan revealed today, Felda will create a new entity to look after the interest of the settlers, whereby the original 37 per cent stake in FGVH that was proposed to be taken up by KPF from the disposal of its stake in Felda Holdings to FGVH, will now be divided between the new entity and Felda itself.

The new entity would then disburse its dividends from FGVH profits to the approximately 112,000 settlers directly.

Isa also said the negotiations with KPF would affect the structure of the listing, aside from jeopardising the self-imposed deadline.

“If we miss the deadline, we have to start all over again,” he said in a press conference. “We can’t be late. This is the best time.”

The listing of the plantation giant was promised by the prime minister to be a “windfall” for the Felda settlers, a traditional vote bank for Umno.

The listing is seen as important toward ensuring continued support from the settlers in the upcoming general election, widely expected to be held in June.

KPH holds a 51 per cent stake in Felda Holdings Berhad and FGVH holds the remaining 49 per cent.

FGVH is a wholly-owned subsidiary of Felda, a statutory body under the Prime Minister’s Department.

Under the plan unveiled today, Felda settlers could benefit in three ways from the listing of FVGH. On top of the dividends from the new entity, they would also retain their shares in Felda Holdings via KPF and will be issued blue forms for the FGVH IPO.

The FGVH draft prospectus was sent to the Securities Commission earlier this week and is expected to be available for public viewing by the end of this week.

 

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