Felda Listing Game Explained!

After spending the last couple of days pouring over the FELDA IPO listing document, we can finally piece together this entire deal and reveal the true secrets that are being with held from the public.

Ok, there is a lot to cover, so lets get right to it

What Actually is Happening

Let’s start with this story about a company called Felda Global Ventures Sdn Bhd (FGVH). We shall call it Najib’s Felda from now on. Technically, this company is owned by the taxpayers through the Government of Malaysia, in reality its owned by Najib, Rosmah and “other Super Puteras.”

This company was initially acting as the ownership vehicle of the Government’s 49% stake in Felda Holdings, where the remaining 51% of the stake was owned by the settlers through Koperasi Permodalan Felda.

We shall call this “Ma’ Felda” because that is the Felda we all know.

So Najib Felda – BAD, Ma Felda, owned by the setllers, GOOD.

Ok got it?

Najib’s Felda then was supposed to manage the overseas business, including the production of fatty acids and food oil in North America. They did this through a company called Twin Rivers Technologies, which made investments in plants and others stuff in US and Canada. Collectively, this business has lost RM 700 m pre tax since 2009. This was mentioned by Anwar Ibrahim a couple of months ago and is a fact!

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Felda Listing Game Explained! IPO Price May Drop!!
11 May 2012 – Pirates-of-putrajaya

FGVH Listing- the game the crooks play

Readers who are interested in reading more vigorous analyses on FGV are advised to read Pirates of Putrajaya. In the English language here and in Bahasa Malaysia here. I am offering a less rigorous analysis here as I feel not as competent as the Pirate in technical matters.

Here is what irks me and I hope it does others too. Felda settlers have given nothing but each felda household is promised and given RM 15,000 each. For what? In return for a promise to vote UMNO and BN in the next elections? And the gnome of the felda chairman says it’s not corruption. The RM 15,000 must be called as what it really is- the price of each settler as seen by the PM. Its bloody corruption.

If not, how do you explain why the PM gives out the 15,000? Does he do it for purely philanthropic reasons?

What is it that FGV offers for sale? Remember- as the Koperasi Permodalan Felda hasn’t parted off with its 51%, what FGV offers to the public is its 49% interest in Felda Holdings. It can’t and doesn’t have the capacity to offer 100% of Felda Holdings. But you be can sure the PM and his macais are rounding up the deep pocketed boys and telling them- don’t worry boys, we will chop off the heads of the KPF leaders one by one. We will deliver you 100% of Felda Holdings.

Or Perhaps we haven’t uncovered yet, the devilish plans they have in store for the 51% which KPF owns in Felda Holdings?

It’s shortchanging the investing public when it can only offer 49% of its interest in Felda Holdings and their valueless businesses abroad which did not make money anyway.

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FGVH Listing- the game the crooks play
15 May 2012 – Sakmongkol

Isa manipulating Felda on all corners: ANAK

Isa Samad’s octopus tentacles have now tightened the grip on every part of Felda, said the chairman of whistleblower group National Felda Settlers’ Children Association, or ANAK.

According to Mazlan Aliman, this has been the case since the Felda chairman’s controversial self-appointment as chairman of the land development authority’s cooperative, Koperasi Permodalan Felda (KPF), after ousting former chairman Dzulkifli Abd Wahad in August last year.

Isa had also sent a letter to prime minister Najib Razak suggesting that Dzulkifli, who is Felda general-manager, be ordered to go on a nine-month study leave. Besides Dzulkifly, it was earlier reported that KPF deputy general manager Abidin Abdul Rahman was demoted and transfered to the PM’s Department for a menial role.

Mazlan revealed that Isa had used his power to terminate three KPF board of directors in Felda Holding, namely Zainal Hassan, Dzulkifli Abd Wahab and Raja Sharifudin, through a letter dated March 22, 2012.

In Felda Global Venture Holding’s listing plan to Bursa Malaysia, Felda will take control of 51 percent in KPF’s equity in FHB and other shares in the companies under Felda Holding Berhad, converting these to 1,265 million normal unit vote-able shares in FGVH, or 37 percent from all the FGVH expanded shares.

However the shares will be given to the investment holding company (IHC), and as a return, KPF is given priority shares but without voting powers in IHC.

Mazlan said Isa was appointed to head the IHC during a meeting with deputy minister in the PM’s Department Ahmad Maslan on December 14 last year.

The PAS central committee member also claimed that he had received information that Isa had set up Felda Global Ventures Plantations (Malaysia) Sdn Bhd in the background to take over Felda Plantations Sdn Bhd.

“Most worrying is out of 12 directors on Felda Plantations, only two will join the new company, Isa and Sabri Ahmad (group president and chief executive officer of Felda Global Ventures Holdings and Felda Holdings Berhad). Just imagine, the absolute power in the hands of Isa Samad and Sabri Ahmad,” he lamented.

“If this is the case before the listing, imagine what they could inflict after the listing,” he added.

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Isa manipulating Felda on all corners: ANAK
14 April 2012 – Malaysia Chronicle

No windfall for settlers under FGVH listing, says PKR

KUALA LUMPUR, April 13 — PKR warned today that FELDA settlers and workers may be required to take bank loans to purchase FELDA Global Ventures Holdings (FGVH) shares once it goes public, instead of receiving the “unimaginable windfall” promised by Datuk Seri Najib Razak.

Describing Najib’s promise as an “election sweetener”, PKR vice-president Nurul Izzah Anwar said in a statement here that it was unlikely that the settlers would be offered free shares or cash incentives as compensation for the FGVH Initial Public Offering (IPO), expected next month.

“Instead, PKR understands that FELDA settlers and workers would be required to take loans with several selected banks to purchase FGVH shares, even though some may have enough savings to purchase the IPO stocks.

“Although the loan margin is 100 per cent, the loan period is only for six months.

“This means they would have to repay the entire loan using their own savings when they receive their pink or blue forms, or use the proceeds from selling FGVH shares in the open market later to repay the loan before or when the six-month period is up,” she said.

The Lembah Pantai MP added that even though the stamping fee is waived, the group would still be subject to paying bank fees and charges amounting to RM200 once the loan is officially issued or RM100 as rebate if the loan is repaid early (when the pink/blue forms are received).

She added that the “daily rest” interest of 5 per cent per annum is a significant 2.5 times higher than the 2 per cent interest granted by the government for the National Feedlot Centre’s (NFC) RM250 million loan.

“Clearly what Najib has described as a quantum leap is more towards opening new business opportunities and providing opportunities to financial institutions to profit from the hard work of these FELDA settlers and workers,” Nurul Izzah said.

The daughter of former finance minister Datuk Seri Anwar Ibrahim claimed that five banks have been appointed to handle all matters related to the FGVH listing, seven banks selected to offer loans for the shares purchase and several brokerage firms to carry out the share transactions in the open market.

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No windfall for settlers under FGVH listing, says PKR
April 13, 2012 – TMI

FGVH listing exposes FELDA to market risks

KUALA LUMPUR, April 11 — Former finance minister Tengku Razaleigh Hamzah has warned that listing FELDA Global Ventures Holdings (FGVH) on the bourse would only expose it to market risks such as share manipulation.

According to Harakah Daily today, the senior Umno leader said FELDA settlers could be left penniless if they were to be influenced by syndicates manipulating Felda’s share prices.

“We fear that these settlers would be influenced by the games of these syndicates. When the share prices are low, surely many settlers interested would make big purchases and even take bank loans for it.

“They would do this with the assumption that they would reap huge profits once the share prices soar. But we must remember that the prices would not stay high forever,” Razaleigh (picture) was quoted as saying today in the PAS organ.

When the prices drop, those who had invested heavily would be left in a lurch, the Kelantan prince better known as “Ku Li” was quoted as saying.

“At that point, ‘mereka akan tinggal sehelai sepinggang sahaja’,” he said, using the Malay term to refer to “penniless”.

Ku Li added that although the government has claimed that settlers’ lands would not be affected by the listing, other FELDA assets would be involved.

These, he said, includes FELDA land without settlers, oil palm factories and many other valuable assets.

“I am concerned and do not know how the government plans on keeping these share market manipulations in check, and in the end, these settlers would be the ones to lose out,” he said, according to Harakah.

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Ku Li: FGVH listing exposes FELDA to market risks
April 11, 2012 – TMI

PAS questions FGVH profit figures

KUALA LUMPUR, March 19 — PAS doubts FELDA Global Ventures Holdings Bhd’s (FGVH) announced profit figures, as the Islamist party continued hounding Putrajaya over the impending listing of the plantation outfit.

Its vice-president Salahuddin Ayub said today deputy minister in the Prime Minister’s Department Datuk Ahmad Maslan told Parliament last week that FGVH’s profits before tax amounted to RM203 million in 2009 and RM300 million in 2010.

“We have documents to challenge these figures. We want specific figures.

“We seriously doubt FELDA’s performance,” the Kubang Kerian MP told reporters here.

Salahuddin said he would give Ahmad three days to furnish Parliament with the necessary financial details.

“We want details of FGVH’s investments, domestic and abroad,” he added.

The FGVH listing, first mooted by Prime Minister Datuk Seri Najib Razak in his Budget 2012 speech, will see the loss-making unit take control of assets now under the FELDA Investment Co-operative (KPF).

Last month, eight FELDA settlers won a temporary court order blocking transfer of shares from KPF to FGVH, a crucial step in the government’s plan to list the plantation firm unit.

But Putrajaya said last week it will push ahead with the proposed listing in June, with or without the 51 per cent stake in commercial arm FELDA Holdings held by settlers.

Ahmad said in a press conference this was because the government wished to capitalise on high crude palm oil (CPO) prices.

“If we cannot set the injunction aside or if they appeal, we still have to go ahead. We have to capitalise while CPO prices are high.

“That is the main factor for why we want to list in May, but now it will probably be in June. But we will go ahead without KPF,” he had said.

The government previously insisted it had backing from a majority of settlers, despite reports of widespread opposition.

FELDA announced that proceeds from the IPO will now be channelled into a special purpose vehicle (SPV) to ensure settlers benefit directly from the listing, after the court blocked the shares transfer.

But PKR charged that the SPV would only lower FGVH’s listing value, adding that the government’s decision was a direct snub to KPF.

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PAS questions FGVH profit figures, claims proof otherwise
March 19, 2012 – TMI

Top Felda officer ‘cold-storaged’ at PM’s Dept

The Koperasi Permodalan Felda (KPF) secretary has been exiled to the Prime Minister’s Department for allegedly opposing the appointment of Isa Samad as the co-operative chairperson, according a PAS parliamentarian.

Mahfuz Omar claimed that Abidin Abdul Rahman, who is also a Felda deputy director-general, has been “cold-storaged”, reduced to doing paper cutting for the department’s library as of March 1.

The Pokok Sena MP added that Abidin has to suffer the consequences of voicing out his concerns in December on the proposed appointment of Isa, as Felda chairperson, to lead KPF – a move deemed violating the co-operative rules.

The Umno assemblyperson and former Negeri Sembilan menteri besar has been Felda chairperson since January last year.

NONEMahfuz (right) said Abidin had said that he would only accept Isa’s appointment as KPF chairperson if he is a member of the co-operative.

“And to be a member, Isa must be either a Felda settler or an operations staff,” Mahfuz told Malaysiakini yesterday.

He claimed that the Felda board first suggested that Abidin be transferred to Public Service Department (PSD) but that was not possible as Felda is a statutory body while PSD is a government entity.

‘A shameful humiliating move’

Abidin was subsequently moved to the Prime Minister’s Department, the politician said.

“This is an shameful move (by the government) to humiliate a government officer,” Mahfuz said.

It was earlier alleged that Felda director-general Dzulkifli Abdul Wahab was forced to take study leave for nine months for apparently opposing Isa’s appointment.

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Top Felda officer ‘cold-storaged’ at PM’s Dept
Mar 15, 2012 – Malaysiakini

New injunction to stop FGVH listing ‘at all costs’

KUALA LUMPUR, March 15 — A FELDA settlers’ group has vowed a fresh suit to stop the proposed listing of FELDA Global Ventures Holdings Berhad (FGVH) that Putrajaya says will benefit those involved in the land scheme.

The government promised yesterday to move ahead with the proposed listing of FGVH, with or without the 51 per cent stake in commercial arm FELDA Holdings held by settlers of the Federal Land Development Authority (FELDA).

A group of eight settlers had last month won a temporary court order blocking the transfer of shares from their FELDA Investment Co-operative (KPF) to FGVH, a crucial step in the plan to list the plantation firm.

FELDA Settlers’ Children’s Association (ANAK) chairman Mazlan Aliman (picture) said the association was looking at different ways in which to halt the listing, one of which is to file an injunction to stop the leasing of FELDA plantation land in different states throughout the country.

“One of the things we are looking at is to file a court injunction to stop the leasing of 360,000 hectares of FELDA plantation land.

“The success of (FGVH’s) the listing depends on the acquisition of the most important assets like KPF shares and (FELDA) land. This is what we want to stop… at all costs,” he told The Malaysian Insider via text message.

“The government has betrayed the policy initiated by (the late) Tun (Abdul) Razak (Hussein). They do not respect the rights of FELDA folk,” added Mazlan.

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ANAK seeks new injunction, to stop FGVH listing ‘at all costs’
March 15, 2012 – TMI

The unconscionable FGV listing

How can we agree to the idea of allowing a smaller business unit that has been making losses for 5 years in a row to take over Felda Holdings? That can only mean it has made serious errors in judgment, careless, wrong businesses to go into and incompetent. Any other lesser known bumiputera would have his ass kicked by a lending institution.

We are treating FGV with the reverence it doesn’t deserve. That’s what FGV is asking to be allowed to do. Transfer the 51% equity belonging to KPF in Felda Holdings, to FGV and then FGV puts up a listing proposal.

FGV has been making losses during 5 consecutive years. We don’t know how much it lost because Felda has not been forthcoming and candid to the PM. The PM doesn’t ask penetrating questions because as he admits, he will speak and debate with responsible only. So, the responsible people are those who tell him what pleases his ears. The felda CEO will tell him we lost a manageable RM 500 million. Felda people tell me, the losses are near RM 2 billion.

How come it made losses? Maybe they chose the wrong business fields. Maybe because they are incompetent. Whatever the reasons are for the accumulated losses, these placed FGV in a weak position to propose a listing with it as leader.

The settlers through their cooperative KPF own 51% of Felda Holding, the arm that actually makes money through a wide variety of businesses. Through its subsidiary, Felda Plantations, it manages and operates the 360,000 hectares of oil palm estates. They probably earn RM 300 million a year in management fees. Some will go to Felda Plantations; the bulk goes to Felda Holdings.

Felda Holding is the pot of gold. It has more than 70 mills which process the FFB yielding around RM 2 billion a year for Felda Holdings. It has refineries. It has its Felda agricultural services which do research and produce some of the best palm seedlings and plants. FAS probably contribute another RM 500 million to Felda Holdings. Felda Holdings is a conglomerate in itself. Felda Palm Industries own and operate the palm oil mills and refineries we mentioned above. It has business in engineering which is responsible for the construction of facilities; it has business units dealing in rubber, in computers etc.

How much money do these generate? Maybe 4 billion a year.

So this mother lode, the main source of revenue earner is what Felda settlers are surrendering. If they participate in FGV, this 51% will be exchanged for shares in FGV, and that 51% will translate to about 38% in the enlarged FGV. So we then need to ask, will income from holding this 38% exceed the current 51% in Felda Holdings?

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The unconscionable FGV listing
9 March 2012 – Sakmongkol

New injunction to stop FGVH listing ‘at all costs’

KUALA LUMPUR, March 15 — A FELDA settlers’ group has vowed a fresh suit to stop the proposed listing of FELDA Global Ventures Holdings Berhad (FGVH) that Putrajaya says will benefit those involved in the land scheme.

The government promised yesterday to move ahead with the proposed listing of FGVH, with or without the 51 per cent stake in commercial arm FELDA Holdings held by settlers of the Federal Land Development Authority (FELDA).

A group of eight settlers had last month won a temporary court order blocking the transfer of shares from their FELDA Investment Co-operative (KPF) to FGVH, a crucial step in the plan to list the plantation firm.

FELDA Settlers’ Children’s Association (ANAK) chairman Mazlan Aliman (picture) said the association was looking at different ways in which to halt the listing, one of which is to file an injunction to stop the leasing of FELDA plantation land in different states throughout the country.

“One of the things we are looking at is to file a court injunction to stop the leasing of 360,000 hectares of FELDA plantation land.

“The success of (FGVH’s) the listing depends on the acquisition of the most important assets like KPF shares and (FELDA) land. This is what we want to stop… at all costs,” he told The Malaysian Insider via text message.

“The government has betrayed the policy initiated by (the late) Tun (Abdul) Razak (Hussein). They do not respect the rights of FELDA folk,” added Mazlan.

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ANAK seeks new injunction, to stop FGVH listing ‘at all costs’
March 15, 2012 – TMI