KUALA LUMPUR: Federal Land Development Authority (Felda), the single largest shareholder of Felda Global Ventures Holdings Bhd (FGV) with 33.67 per cent stake, is now properly represented in FGV's board.
“Now that Datuk Wira Azhar is chairing FGV and Felda’s representatives Ab Ghani and Datuk Abu Bakar are (board members), we hope to see FGV going back to focus on its plantation and downstream businesses and not be dragged into the country’s politics,” said Felda chairman Tan Sri Shahrir Abdul Samad.
FGV announced to Bursa Malaysia the appointment of Felda director general Ab Ghani Mohd Ali, 59; and Pahang State Felda Affairs Committee chairman Datuk Abu Bakar Harun, 56; as non-executive directors effective July 12 2017. Felda deputy director general (management) Datuk Muzzammil Mohd Nor, 45, is alternate to Ab Ghani.
On the September 8 2017, Prime Minister Datuk Seri Najib Razak appointed Datuk Wira Azhar Abdul Hamid as FGV chairman.
Azhar is no stranger to the plantation sector, having had a stint at Sime Darby Bhd as its executive vice-president of the plantation and agribusiness division, and as its acting president and chief executive from May 2010 to June 2010.
On September 11 2017, Azhar clocked in for his first day of work at Menara Felda. He pledged to resolve issues within FGV.
FGV’s president and chief executive officer Datuk Zakaria Arshad has been on forced leave since June 6 2017, due to a domestic inquiry on purported wrongdoing in business dealings between its subsidiary Delima Oil Products Sdn Bhd and long-term business partner Afghan-based Safitex Trading LLC.
When asked on Zakaria's fate, Shahrir replied, “You’ll have to ask FGV board of directors. I can't answer that question as I’m only Felda chairman.”
On Najib’s recent announcement that Felda’s settlers’ cost of subscribing to FGV shares will be halved, Shahrir said: “Felda, as part of its social duties will match the cost, ringgit-for-ringgit.”
This means Felda will write off 50 per cent of the loans that the settlers had taken to subscribe FGV shares. So far, 1,626 settlers have paid off their loans taken for the FGV shares. This group will receive RM1,820 in cash payment, which is 50 per cent of the amount they had forked out.
The total liabilities that Felda initially assumed arising from loans taken by settlers to subscribe for FGV shares stood at RM358 million.
Since then, some of the settlers had repaid their loans to the sum of RM158 million as of April 2017, which left the balance to be settled at about RM230 million.
Shahrir highlighted that Felda settlers holding FGV shares have also benefited from dividend payouts.
“Based on the RM3,640 each settler had paid for 800 units of FGV shares, they would have received sevenfold returns in dividends, in the last five years.”
When FGV was listed on the stock exchange, Felda as the parent, controls FGV. Out of its controlling stake in FGV, 20 per cent is kept in trust for settlers.
“If the settlers are still holding their shares today, they would have been receiving their fair share of dividends.
“Since FGV’s listing on Bursa Malaysia in mid-2012, we’ve received and distributed RM254.51 million in dividends to settlers. That works out to be an average of RM2,400 in FGV dividend payout per settler,” the Felda chairman added.