Felda's takeover of FGV should be implemented in settlers' best interest - Senate Caucus

Its chairman, Senator Datuk Razali Idris, said the takeover, among others, must ensure that the profits would be shared with those involved through reasonable terms and not just fulfilling the personal agenda of any quarters.

This includes ensuring that the offered price of RM1.30 per share is compatible with the current market price, he said in a statement today.

He said this was because Felda settlers made up the majority of FGV shareholders.

At the same time, he said the caucus also wanted the relevant parties to ensure that the takeover would be the catalyst to Felda's progress through the creation of high-income jobs and large-scale economy, as well as in upgrading education and training, empowering the settlers and their generation, and in developing entrepreneurship skills among the second and third generations of Felda.

“Felda also needs to ensure that the settlers and company assets continue to be protected from being manipulated by greedy traders, foreign conglomerate companies and certain parties who would take the opportunity to reap the profits of the organisation,” he said.

Apart from that, Razali said Felda should also give assurance of its performance, including to have the price and extraction rate of palm oil reviewed, discussed and added value through joint negotiations to protect the settlers.

“The caucus also hopes that in the interest of 112,638 settlers and two million Felda citizens, the takeover of FGV will be carried out smoothly, harmoniously and properly,” he said.

The media previously reported that Felda had acquired another 1.65 million shares of FGV from the open market at an offer price of RM1.30 per share on Feb 4 (Thursday).

This followed Felda's announcement on Dec 8, 2020, on its takeover bid after purchasing 222.48 million shares of FGV (6.1 per cent) held by the Retirement Fund (Incorporated) (KWAP) and 283.71 million shares of FGV (7.78 per cent) held by Urusharta Jamaah Sdn Bhd worth RM658 million.

As of Jan 29, Felda and those involved hold a 68.76 per cent stake in FGV.