FELDA Global Ventures Holdings (FGVH) is facing multi facade fronts in the sordid attempt to derail the listing exercise on the Bursa Malaysia sometime March-April next year. The latest is made by Straits Times and in the attempt to cast doubts for Malaysians, done through a KL based online news portal which lost a lot credibility lately.
The fact is that ruling party Barisan Nasional don’t work to get GLCs listed, so that the coalition of 13 parties representing all quarters of Malaysians has enough in its coffers to fight in general election. It is a preposterous notion concoted with a sinister intent. After all, neither any of BN component parties have any business interests in any of the GLCs.
It is also not true FELDA Global Ventures (FGV) is hiving off their investments in North America to Sime Darby. In fact, they are beefing up their management, processes and even the supply and distribution chain. One of the initiatives is to encourage and working closely Canadian farmers to grow canolla, so that the Twin River Technologies facilities in Becancour, Quebec is set to have a sustainable business model. Same initiatives are being worked on for the TRT plant in Cincinnati, Ohio.
FELDA Holdings Bhd MD Dato’ Seri Sabri Ahmad pays personal attention of all FGV’s investments abroad, which include all the restructuring plans and new strategies formed.
Part of FELDA Global Ventures Holdings exercise to have an international partner, which has a very good supply and downstream chain in the the agriculture, plantations and farming related commodities business. This is to ensure that all FGVH upstream products would eventually end up in the right international markets, as value added or finished products.
Both FHB and FGV is being managed by the same management team, This practice was streamlined during Dato’ Seri Mohd, Bakke Salleh’s brief tenure, where Federal Government formed FGVH with the intention of consolidation of all Kumpulan FELDA businesses under one vehicle. Last audited report shows that FHB made PATAMI of RM 766 million and FGV made PATAMI of RM 360 million.
Currently, FHB is only 25% of the consolidated market capitalization of FGVH where else FGVis the rest. Koperasi Permodalan FELDA (KPF) being 51% shareholder of FHB would only tend to realise between 22.5-25% of FGVH. The ‘unlocking’ of the real values of these assets and investments would define their true value further. Just like in the listing of MSM Holdings Bhd in June. For the FGVH listing, Prime Minister Dato’ Seri Mohd. Najib Tun Razak instructed that KPF would eventually own 35% of FGVH, from all the ‘share swap’ and business rationalization programs and ‘unlocking’ of the assets.
The net end winner in the post listing FGVH is not BN but the 112,635 FELDA settlers, who are part of the 220,000 KPF members. It is by design.
More updates later.