Felda to go ahead with IPO
Proposed SPV to represent settlers’ interests
STARBIZ The proposed listing of Felda Global Ventures Holdings Bhd will go ahead.
KUALA LUMPUR: Felda will go ahead with the proposed listing of its investment arm, Felda Global Ventures Holdings Bhd (FGVH), even without the direct involvement of Koperasi Permodalan Felda Malaysia Bhd (KPF), a cooperative owned by Felda settlers, their families and Felda staff.
With KPF effectively out of the picture, Felda chairman Tan Sri Mohd Isa Abdul Samad said the statutory body would propose the creation of a special-purpose vehicle (SPV) to provide for the Felda settlers’ interest in the listed entity FGVH.
“We plan to submit the new structure of FGVH (without KPF as a major shareholder) to the Securities Commission in the near foreseeable future,” he said, adding that the listing exercise would still take place between May and June this year.
“The FGVH initial public offering is going through the usual regulatory process and nothing has been finalised at this point. I urge all parties not to make any statements or speculations on the outcome.”
While declining to reveal further details of the SPV plan, Isa said: “We have stated our intention that settlers should benefit from the proposed listing. Since the proceeds from the proposed listing and potential profits from the listed entity cannot be channelled through KPF, the SPV will assume this role to ensure Felda settlers will benefit directly from the proposed listing and get to enjoy all future profits.”
He was speaking at a press conference ahead of a closed-door special briefing to some 800 KPF members who were supposed to attend an EGM slated for yesterday.
However, a notice of the EGM cancellation was issued on Tuesday following the Kuantan High Court’s decision last Friday to grant an interim injunction by eight Felda settlers barring KPF from transferring its 51% stake in Felda Holdings Bhd and its 10 subsidiaries to FGVH or for any discussions to be held on the same matter on behalf of KPF at the EGM.
Isa earlier also expressed his disappointment over the decision of a handful of Felda settlers to block KPF’S participation in FGVH.
“I want to be very clear Felda wants KPF to participate in the FGVH IPO but it is unfortunate that a small group of settlers influenced by the National Felda Settlers Children’s Association (ANAK) has chosen this path.
“We are disappointed at their repeated attempts, which goes against the wishes of the majority of hard-working KPF members and deprived them of this opportunity.”
He again reiterated that no Felda settlers’ land, which is about 500,000 ha, would be “touched” for the proposed listing.
“The Felda settlers will now be able to enjoy any returns or windfall from the proposed listing directly through the SPV to be created,” added Isa.
Meanwhile, Felda in clarifying Starbiz report yesterday, said so far there was only one court injunction
– the current one from the Kuantan High Court – by Felda settlers that barred KPF from transferring its stake to FGVH.
It said that the first court injunction by four feld a settlers in temerloh to block a KPF EGM from being held on Jan 5 was struck out when the first EGM was cancelled.
Felda also said in January this year that Felda and FGVH undertook a long-term lease agreement on Felda’s land of about 350,000 ha. The lease agreement does not involve land owned by the settlers.
Felda also clarified that the law under which the statutory body was set up only applied to Felda. FGVH, Felda Holdings and Felda’s other business subsidiaries were incorporated under the Companies Act and are therefore governed by the Companies Act.