26 April 2012
Koperasi Permodalan Felda (KPF) will not participate in Felda Global Ventures listing
The listing of Felda Global Ventures Holdings Bhd (FGVH) slated for end-May or early-June is on track, but there will be no participation from Koperasi Permodalan Felda (KPF) as a major shareholder in the listed entity, said chairman Tan Sri Isa Samad.
“We decided to proceed with our alternative plan announced on Feb 22 whereby a special purpose vehicle (SPV) together with Federal Land Development Authority (Felda) will now act as trustees to provide for Felda settlers' interest in FGVH post-listing,” Isa told a press briefing at Balai Felda yesterday.
About 112,600 Felda settlers, their families and Felda staff via KPF, holds a 51% stake in Felda Holdings, which in turn is a 49% subsidiary of FGVH. The statutory body under the Prime Minister's Department, Felda meanwhile has a 100% stake in FGVH.
Although KPF for the “time being” would not be a major shareholder in the listed entity FGVH, Isa said Felda settlers would still reap the benefits in the form of new dividends allocation from the SPV and Felda, blue forms entitlement from the listing exercise and the existing yearly dividend payout from KPF investment in Felda Holdings Bhd.
He, however, declined to comment on the actual structure of the listed entity or the percentage of dividends to be allocated by the SPV and Felda from FGVH's initial public offering.
“Felda settlers' interest will be taken care of and the best part is that their total 500,000ha will be left untouched (after FGVH listing),” added Isa.
Meanwhile, the decision not to include KPF as a major shareholder in the listed entity FGVH came as a big surprise to many industry observers especially after a majority of KPF shareholders voted in favour of FGVH's listing at the cooperative EGM last Thursday.
The KPF EGM hit a snag after an interim injunction was made by eight Felda settlers in an attempt to block the sale of KPF's stake in Felda Holdings to FGVH.
Felda's traditional businesses such as the production of crude palm oil (CPO) and rubber manufacturing are vested in companies under Felda Holdings, while Felda's global interests and its newer foray such as sugar refining are parked under FGVH.
Isa explained: “Despite the green light from last Thursday's KPF EGM, Felda's management at this juncture finds it very time-consuming to make changes to our already prepared accounts, the FGVH structure and also to deal with the new terms proposed by KPF shareholders at the recent EGM.”
He said Felda does not want to delay the listing of FGVH and would stick with the stipulated time-frame between May and June.
“We believe it is timely to list now especially with the CPO price staying above RM3,000 per tonne currently,” added Isa.
Sources told StarBiz that FVGH's draft prospectus has been submitted to the Securities Commission and is expected to be available for public viewing by the end of this week.