KUALA LUMPUR: Singapore International Arbitration Centre (SIAC) has ruled in favour of Felda-owned FIC Properties Sdn Bhd (FICP) in the company's second attempt to exercise the 'Put Option' to sell its 37 per cent stake in PT Eagle High Plantations Tbk back to the Rajawali Group.
Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi in a parliament reply said the tribunal in its ruling on June 14 ordered either PT Rajawali Capital International or PT Rajawali Capital, or both of them, to fulfill their obligations under the 'Put Option' by repurchasing the Eagle High Plantation shares at a price agreed by FICP.
"Felda and FICP consistently assert the validity of the 'Put Option' rights, and we are pleased that the tribunal has definitively upheld this position in the published award.
"Felda is currently exploring options to acknowledge and implement the award," he said in reply to a question from Datuk Radzi Jidin (PN-Putrajaya).
Zahid said the proceedings were held on Dec 5 and 6 last year, with the decision by a panel of experienced arbitral tribunal delivered on June 14.
Zahid, who is also rural and regional development minister, said Felda has not recorded any profit or dividend earnings from its investment in the 37 per cent shares of Eagle High Plantations.
FICP initiated the second exercise of arbitration at SIAC against the Rajawali Group regarding the put option to sell its stake in EHP on Jan 17, last year.
It was part of the share sale agreement between FICP and Rajawali when FICP acquired the 37 per cent stake back in 2015 for US$505.4 million (RM2.2 billion).