Azhar Abdul Hamid new FGV chairman
He takes over role from acting chairman Sulaiman Mahbob
THE PM, in announcing the appointment, says he is confident Azhar will enhance investor confidence, leading to stronger share prices.
The FGV board, however, says Sulaiman Mahbob will continue to be acting chairman until a notification in writing is received from the Minister of Finance
(Incorporated).
OOI TEE CHING KUALA LUMPUR news@nst.com.my
DATUK Wira Azhar Abdul Hamid is the new chairman of Felda Global Ventures Holdings Bhd (FGV) effective yesterday, Prime Minister Datuk Seri Najib Razak announced.
Azhar, former Malakoff Corp Bhd managing director, takes over from FGV acting chairman Tan Sri Dr Sulaiman Mahbob, 67, who is also a non-executive director at FGV.
“I am confident that with his vast experience, Azhar will effectively helm FGV and boost investor confidence, leading to stronger share prices for the company,” Najib said.
As a listed company with the bulk of its shares owned by the Federal Land Development Authority (Felda), he said, FGV was critical to Felda communities.
Najib thanked Sulaiman, who was acting chairman since June 19, for his contribution to FGV despite having to juggle between the acting post and his responsibilities as Telekom Malaysia Bhd chairman.
Sulaiman was appointed a director of FGV on March 15, 2014. Since June 20, Sulaiman has been chairing FGV’s board of directors when the Prime Minister’s Office announced that he would be taking over the chairmanship from Tan Sri Mohd Isa Abdul Samad.
Azhar yesterday told the New Straits Times that he was grateful to Najib for the appointment.
“Yes, I met the prime minister last night (Thursday).
“I would like to thank him for his confidence in me to take on this position at FGV.
“I welcome the challenge and I will do my level best to lead FGV and maximise the company’s asset potentials.”
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THE market and analysts seem to back the move to appoint Datuk Wira Azhar Abdul Hamid as Felda Global Ventures Holdings Bhd’s (FGV) chairman.
Analysts, however, noted that the more pressing matter for the FGV board was to resolve the issue of its president and chief executive officer (CEO).
As soon as the appointment was announced, FGV shares surged to an intraday high of RM1.68 in the afternoon. The shares closed 3.14 per cent higher to RM1.64 yesterday, from Thursday’s close of RM1.59.
It saw 228.64 per cent higher trading volume, with 13.3 million shares changing hands, compared with Thursday.
With the important piece of the puzzle slotted in, the market now awaits the announcement on the CEO’s position so as to gain clarity on the company’s direction.
“We think the market will be looking to the decision on the domestic inquiry (DI) proceedings on the group president/CEO,” MIDF Research plantation analyst Alan Lim told NST Business.
Azhar’s appointment would be positive on FGV as it reflects more certainty on the company’s direction, he added.
Prime Minister Datuk Seri Najib Razak announced the appointment yesterday, expressing confidence that with his vast experience, Azhar will helm FGV effectively and enhance investor confidence which would translate to a stronger share price for the plantation company.
Azhar takes over from FGV acting chairman Tan Sri Sulaiman Mahbob effective yesterday.
FGV independent DI panel will deliver its decision on group president and CEO Datuk Zakaria Arshad early next week.
On June 6, Zakaria was suspended along with chief financial officer Ahmad Tifli Mohd Talha and two other senior officers, namely Delima Oil Products Sdn Bhd senior general manager Kamarzaman Abd Karim and FGV Trading Sdn Bhd CEO Ahmad Salman Omar.
The suspensions were due to alleged accounting irregularities at FGV’s unit Delima Oil Products, which had dealings with Dubaibased Safitex Trading LLC.
An investment banking analyst who is positive on Azhar’s appointment said the CEO issue should be concluded as soon as possible as the position is important.
“If Zakaria gets reinstated it would be positive for sentiment, but after FGV’s latest clarification to Bursa Malaysia, anything can take place,” said another analyst.
Nazarry Rosli, panel of Malaysian Association of Technical Analysts, said Azhar could help any CEO, new or current, to
bring FGV to a better position given his vast experiences in delivering results in his many previous positions.
“His vast experiences in heading big and established corporations, especially a plantation giant (Sime Darby Bhd) is good news to FGV as he can take FGV to greater heights,” he added.