Part 1: FELDA – The smell of easy money
Part 2: FELDA – The smell of easy money
Part 3: FELDA – The smell of easy money
Part 4: FELDA – The smell of easy money
- The government excuse for pushing FGV, FH and KPF to go through a merger and a USD2 billion IPO exercise is that they want to improve the settlers well being. They alleged that they want to improve the wealth of KPF members whom on average currently owns only 5,000 shares by operating business in the international environment. They want to unlock the value of Felda. What an utter nonsense excuse. In reality it is about raising money with the intention of investing in business outside the current Felda loop. By doing an IPO a lot of people will make money. It will start with the consultants, the merchant bankers and eventually the powers behind the money.
- Reality is that KPF can do the same without FGV but FGV cannot do it without KPF. The reason being KPF has 220,000 members who are landowners and is the key in FGV game plan. In one part, they plan to lease the land from each settler and run it as an estate much like SD, Guthrie etc. Without KPF, it would be impossible for FGV to lease the land. They cannot go down and negotiate with 220,000 members. With one pen stroke they can lease the land via KPF. Who actually needs the money from the IPO? Is it Felda Holding or KPF? No it’s FGV. The land leasing arrangement and turning it into a mega estate is the smallest objective of FGV. Their plan is to go global and to do that they need money. They cant raised money, as they don’t have decent amount of assets
- Fact remains that if KPF wants to do the same exercise without FGV it can be done with ease. They don’t need FGV. They have the members who have land and they own 51% of FH. At the moment they seem contented with their current returns and dividends offered to the members. The main issue is why didn’t KPF go for IPO without FGV. They were advice to do so by the consultants and had considered the options seriously. Unfortunately Felda-A was not happy of the proposed game plan. The politicians were equally upset, as they are not able to reap the benefits in the whole process. Hence they decided to infiltrate the board and “educate” the members on the need to list FGV. Quite obviously Isa Samad is not the brain behind this whole operations. He is just an “adjutant” in this whole process. Should we talk about the brains and the personalities in the next part and how much they expect to make directly and indirectly? Let me ponder about it. ?
Dont forget!! 99% of KPF members is Malay.
Raffick,
Though I might have uploaded this fantastic documentary many times. Sometimes, you can enjoy watching! It’s also about peoples’ choice economy
Thanks all. Let me make clear the position. Like what observer is saying theres a massive land bank in Felda A which is sought after. Not denying there’s problem in Fgvh, but kpf never had direct benefit of this felda A asset. The listing deal merges these businesses in Felda under Fgvh n overall people will see it’s quite profitable. I believe kpf will benefit most. Since only members can benefit, settlers and Felda employees will gain much.
My basis and doc’s are thus different leading to different emphasis.
Felda A don’t own land. The land is parked under Felda Holding. The size is about 330K hectares. KPF being the 51% shareholder of FH is the part owner of the land
Ellese,
Agree with Doc that the land is parked under FH and members of KPF – the settlers and employees are enjoying the benefits thru the 51% shareholding and exercise control on the outcome of any decision. The listing of FCVHB thru the M&A is to rest management control and to unlock the assets, which is not possible under the current scenerio.
Tell me I am wrong !
AK n doc,
You are absolutely wrong. I am absolutely dead sure of my facts. Anak knows of this. Probably get anak to countercheck. It’s absolutely lucrative for fgv n kpf. The listing docs will bear this out.
Ellese,
It is only recently when Isa & Ahmad Sabri came into the picture that same persons helming the various positions in Felda A, KPF, FGV and FH but still the stakeholders of the cooperative/shareholders of KPF (settlers and employees) have a say. They will ultimately lose control once their KPF shares are swapped with FGV shares under the listing.
BTW, Doc has come up with a lot of facts from docs in his possession. However, you have not come up with hard facts but to say we are wrong!
Sorry if I had been harsh. Our facts differ and when people say I’m wrong I typically reply the same. I’ll retract and explain.
The main contention by those against fgv is that fgv is not profitable compared to FH. I can agree with that.
But my main assertion is this. If all business of Felda A fgv and FH are merged it’s more profitable. Felda A has a high income producing assets which as I understand from the deal structure will be injected into fgv. What follows is this. Bearing all status quo on the numbers, if kpf swaps share with fgv kpf will get more from an increase profit from the injected assets had they been shareholders of FH only.
This is where I greatly depart from doc. From Felda overall point of view it does not make sense if the land is injected into FH. They still have unmerged business in fgv to maintain.
On similar shareholding please check that Datuk Zul and abidin sits in Felda A and kpf. If not mistaken the bye laws of kpf states it must be from Felda A. Can’t get hold of the bye laws and appreciate if one can confirm.
Ellese,
Thank you for the explanation. I have through my son 100K odd shares in KPF and is a concerned party. In a dilemma to support the IPO, which is the normal way to grow the business but the performance of FGV that made losses in business ventures in the USA is an even bigger concern.
AK…
That’s ~ RM15K to RM20K per annum in dividend. Dah sampai limit ke belum? Kalau belum saya nak tumpang sekaki..
Yes , he has been enjoying pocket money for a couple of years. I have requested my son to top up to the max of 250K.
not for long though..after listing..dapatlah 4-5% madam listed company lain
saya pun nak tumpang… susah nak dapat ROI 15% now days
Doc,
What can I do but sell the shares if the IPO goes ahead with “durian runtuh” but then that is what we should not but force to do ! This is what is worrying for the settlers/employees
ellesse
like i said, i am awaiting the info gaps from you. having an IPO oversubsribed is no indication that the settlers are not taken for a ride. I still cant fathom whats the benefit of merging a loss-making entity with the plantation lands for a listing. Your general statement “consolidate and will be very profitable” is beyond my understanding. Appreciate if you could explain further.
I guess Raffick message is perfectly clear
However, smart alecs’ tactics are to confuse if convincing is not working
Enough of this bullshit! First upmost solution is to sink UMNO along with its underlings
What’s the use of debating with such people? Truman has made a decision to nuke Japan. If not, how much more life lost by nuking Japan
Likewise, let continue our plan to ABU
Anything but UMNO-BN
Why are you so intolerant of contrarion view and dissent? Why are you so bend on suppressing my right of expression here and other forums? If disagree counter. You know by now you should not start with me.
I have encountered too many of your kind of late. Claim to believe in freedom of Expression but seek to suppress my views by banning me. Allowing cronies unlimited liberties to express unrelated hatred expression even using foul language but I had to limit to narrow confine of topics. This double standard prevails in people like you. These are people when govern will support suppressive laws against contrarion views. Two sides of the same coin with those you despise.
Sorry,
I just knew your ulterior motive! Just like LKY, it must be destroyed! Period! By the way, nobody is suppressing it. Not even Din Merican. Perhaps, you should ask yourself why Din Merican has issues with you.
Your intention is absolutely clear from day one. Even Margaret Thatcher would run you over in United Kingdom
You lied between your teeth. The point I was banned was the same point hafiz raised which was published. He banned me to protect his cronies who went viral on animal name calling. I did not start. He like you became offended with my write and not being able to respond by point went for name calling.
You must stop this extreme hatred politics in you. You don’t realize people see how shallow you are. Take instance your support against peaceful assembly act. Again youre purporting to fight for freedom of assembly but everyone knows here you don’t. You agreed bersih can assemble but perkasa cannot. People know your right or wrong depends on who you support and not the action. People of your kind is no different from perkasa. It will destroy our nation with one sided partisanship. The balance must be in the middle. Not perkasa and not your extreme kind.
If don’t like counter. Be intelligent by reading and analysing more and not just run down people with hyperbole statements. Don’t do what you condemn of others. You condemn MSM for giving one sided views and suppressing contrarion pr views but you yourself practice and support MSM model. There’s a name for this kind of people. You’ve been showing too much of this motive. I suggest you reduce it for purpose of better exchange of ideas. Never be afraid of any contrarion ideas or views.
Ellese,
Tell me one simple truth! If UMNO is going to stick by the rule if they lose big in PRU13. Read what Raffick is advocating
Bring democracy back to Perak
That’s why you must be destroyed! Just like that Zul fella masqueared as WP candidate during 80s in Singapore election! I stayed in Singapore where the vestige of UMNO is fully destroyed & the melayus there rejoiced!
What has this to do in my call to ask you to
counter points and not run down people? You dont advocate two party system. If possible you want one party autocratic system. You are demonstrate intolerance of dissent just like you condemn UMNO and MSM of the same. With people like you we get the same thing or worse. It’s just empty insignificant call for change.
FH is more than self sustaining. FH does not ask for any money from the taxpayers. FH annual income is more than enough to manage its plantations, pay good pensions and handsome dividends to all its members. It is cash rich and does not have borrowings. Why should FH be like Khazanah? Why should FH be listed? Why should FH makes its cake smaller?
On the other hand, it appears to me it is FGV who needs the crutches and hand-holding or spoon feeding. If the government did not reduce the sugar subsidy which resulted in the people having to pay more their sugar needs, FGV investment in MSM Holdings may not be as sweet. Now, from 49% to 100% in FH! Where is the logic? What corporate restructuring? You don’t need to have Harvard brains to smell ‘the smell of easy money’.
I wonder who is ‘the brain behind this whole operations’ ?
Zul,
A response to all the smart alecs, Message from Margaret Thatcher
looes74… Je vous ai lu fort et clair
Whoops! Vous connais je comprend le francais. Moi, Je etude dans la institute de francaise-singapour pour trois ans. Ingenieur electronik
Hehe,
My french getting more & more rusty. Should heed Din Merican’s call to buck up on french
ellesse
the structure s very simple. have a holding co and inject both FGV and KPA and list the holding co.
sure I agree that listing without value add is meaningless unless there are other motives. In this instance, tell me how value is added by combining a loss-making entity with a profitable company for listing.
may be you have the numbers but a layman like me will never comprehend. FGV has losses accumulated to the tune of RM0.5b and how it is going to add value to the settlers. In the first place, who drove these loss making acquisitions.
and by the way, where has the RM6.0b EPF loans gone to? May be you have an insight to that and I will be happy if you can share.
That’s why I ask for doc to lay out the deal structure. You only got part of it. There’s a prized asset which everyone including the greedy Anak wants. If you consolidate it would be very profitable. I think the ipo will be oversubscribed many many times. If settlers don’t want it it will be their total loss.
The information to the public is still sketchy but I think doc could probably elaborate more on the asset injection structure and valuation which will make it highly sought after later. Put it like this I will put my money in to apply for the shares during IPO. I think it’s totally wasted if kpf doesn’t subscribe.
Perhaps you should talk about personality. But we need to be clear on the deal structure. You said:
“In one part, they plan to lease the land from each settler and run it as an estate much like SD, Guthrie etc. Without KPF, it would be impossible for FGV to lease the land. They cannot go down and negotiate with 220,000 members”.
I don’t recall any read on injecting settlers land as part of deal structure. Please confirm this. As I understand kpf is the biggest beneficiary and that’s why there’s a fight for control in kpf. Kpf is a coop and cannot be listed. It probably can list it’s subs but again I don’t see the benefit of sharing of your wholly own profits with third parties thru listing. It’s only beneficial if there’s value add to it’s investment. There is doc which is the prized asset injected pre listing. There is injection of lease but not from settlers which anak has been clamoring for all the while.
I’m still trying to get t deal structure of the listing. Perhaps you have it and could lay it out what assets and restructuring arrangement currently being undertaken and if possible the flow of money when we have this together with the figure. Ill be clearer then..
Talk about personality.. I need to thread carefully for the obvious reasons.
On the land leasing arrangement, I have sighted the necessary document that support my writing.
Board representation of the new enlarged FGV is certainly an issue as the choice of candidate needs the approval of Felda A. This means whoever control the authority will have the final say on who sits on the board and the board independence is lost.
KPF cannot be listed but they can always use Felda Holding or create a new entity that inject their 51% share of FH and list that if they want to.
I will let you know what are business that FGV will inject into the deal and it is certainly not interesting at all!
Dr,
Felda owns large tracts of oil palm plantation that is managed by FH. This is separate from the land owned by the Settlers.
Are you confused with the land owned by Felda that is being leased? It would be impossible to negotiate with the 130,000 settlers and their family to get them to agree to lease their land. If so, shares should be issued to them individually instead of KPF or Felda. How long do you think it will take to undertake such negotiations? Do you really think then if that is the case, which decade will the listing take place?
Please produce the document that you read, maybe we all can help you decipher it.
Observer
I am very clear with the facts that i write. I am aware about the land owned by Felda Holdings. FH land bank is 360K hectares compared to 550K Hectares owned by settlers. In phase 1 they want to absorb the 360K hectares under Felda Holding and in Phase 2 they will inject the land leased from settlers. The settlers has strong trust in KPF. It is for that reason they want KPF to be in. Without KPF they cannot touch ALL the land banks I have volumes of documents that you can read if you want to. So far I have presented facts which shows that you are wrong in most aspects.
Come to BA tonight, PR will talk about Felda issues tonight. Maybe you can get the input. Location Infront of Craven Cafe: Time 0830pm. If PR start attacking personalities like Zulkifli Noordin than they will get it from me!
Dear doc,
On this score I’m more agreeable with observer. What came to my knowledge was land of Felda A n not FH. That’s why datuk Zul n Felda A were not happy. This is a lucrative asset. The greedy Anak had always wanted this land. That’s why it’s a cash cow for kpf in this deal. That’s my whole hypothesis doc. Let’s lay out all the deal structure and I believe it could elucidate the issue.
Ellese
I have explained below to Observer. Please read. Your conclusion is wrong. The 300+hectares are parked under Felda Holding which is 51% owned by KPF. I am writing here based on voluminous document that i have which was given to me by key people in Felda A.
At the moment FGV cannot touch KPF. The M&A of KPF into FGVHB will allow management control by FGV and they can then unlock the assets of FH for better or worse. The original stakeholders of KPF will be at the mercy of whatever business decison by people from FGV.
Dear AK,
Technically fgv cannot controlkpf. Kpf is parent. But kpf and Felda A share similar top decision maker. I think it makes not much difference in post or pre listing. Too many people wearingsame hat.
Ellese,
I don’t understand your explanation. Agree that FGV cannot control KPF now but once both merge & acquire as FGVB then who has the management control ? The BOD and not the shareholders have control ! Noted that you are ambivalent to listng – so do I. The government has not been transparent in explaining the rationale for listing.
Were at different end again doc though this time I’m ambivalent on listing.
I’m very certain of my source as well. There’ssome privy info which can only be disclosed later. But believe if you look at the ipo docs later it’s consistent and congruent.
I can see the rationale in merging the business. But I question why we need to take populist move again to serve the kpf and settlers.so we depart again.:)
Ellese/Observer
Read what AK47 has to say about Felda http://sakmongkol.blogspot.com/2011/12/fgv-listing-and-interests-of-settlers.html
Ellese,
Please share with us the rationale of merging KPF & FGV and the SWOT analysis on the IPO. As I see it, whoever is behind this IPO wants to take control of the land banks belonging to KPF and the landbanks belonging to settlers that have been leased to KPF.
Dear AK
Purpose of IPO is to raise RM6 bill. The question should be the purpose of raising this money. Coincidently Felda also borrowed RM6 bill from EPF but it is not clear which Felda borrowed the money i.e. Felda A or FH. I believe it was borrowed by Felda-A
That is not a good reason for IPO akin to bailing out. The pro and con need to be debated.
Dear Ellese
The following are Felda Holding Subsidiaries
Plantation Related
1. FELDA PLANTATIONS SDN BHD (232400-U)
2. FELDA PALM INDUSTRIES SDN BHD (359584-V)
3. FELDA TECHNOPLANT SDN BHD (700736-W)
4. FELDA AGRICULTURAL SERVICES SDN BHD (353791-M)
5. FELDA FARM PRODUCTS SDN BHD (354339-P)
Downstream business
1. FELDA KERNEL PRODUCTS SDN BHD (353786-A)
2. FELDA VEGETABLE OIL PRODUCTS SDN BHD (353930-K
3. FELDA OIL PRODUCTS SDN BHD (024499-V)
4. FELDA MARKETING SERVICES SDN BHD (353807-M)
5. NARATHA AGRO INDUSTRIES (PRIVATE) LIMITED
6. DELIMA OIL PRODUCTS SDN BHD (23120-H)
7. FELDA TRANSPORT SERVICES SDN BHD (357718-K)
8. FELDA-CFA LOGISTICS SDN BHD (694599-V)
Manufacturing
1. FELDA RUBBER INDUSTRIES SDN BHD (357896 -U)
2. PT FELDA INDO RUBBER
3. FELTEX CO LTD
4. MALAYSIA COCOA MANUFACTURING SDN BHD (65675-T)
5. FPM SDN BHD (25952-H)
6. FELDA-JOHORE BULKERS SDN BHD (20547-U)
7. PT PATISINDO SAWIT
8. PASIR GUDANG GRAINS TERMINAL SDN BHD (160939-D)
9. FELDA BULKERS SDN BHD (353793-T)
Services
1.FELDA PRODATA SYSTEMS SDN BHD (353944-K)
2. FELDA ENGINEERING SERVICES SDN BHD (299557-X)
3. ALLIED ENGINEERING CONSULTANCY SDN BHD (236756-D)
4. FELDA CONSTRUCTION SDN BHD (360025-D)
5. FELDA PROPERTIES SDN BHD (353987-H)
6. FELDA SECURITY SERVICES SDN BHD (357789-M)
Joint Ventures between FH and 3rd parties. FH shares varies for each JV
1. FPG OLEOCHEMICALS SDN BHD (184896-U)
2. TAIKO CLAY CHEMICALS SDN BHD (400426-D)
3. PK EDUCATION SDN BHD (307215-P)
4. VORAY HOLDINGS LIMITED (446269)
5. BEHN MEYER & CO (M) SDN BHD (3636-V)
6. MALAYSIA PAKISTAN VENTURE SDN BHD (255972-A)
7. KILANG GULA FELDA PERLIS SDN BHD (10776-K)
8. LANGSAT BULKERS SDN BHD (727470-K)
9. BH INSURANCE (M) BHD (29962-V)
10. FELDA BRIDGE AFRICA (PTY) LTD (1996/01156)
11. MAPAK EDIBLE OILS (PVT) LTD
12. PARAGON YIELD SDN BHD (646264-P)
13. FELDA HERBAL CORPORATION SDN BHD (651228-X)
14. FELDA IFFCO SDN BHD (756204-H)
15. KUALA MUDA ESTATE
16. PLANTATION RESORTS SDN BHD (514497-X)
17.FELDA TRAVEL SDN BHD (100395-K)
Dr,
Under the Group Settlement Act the 300k hectares can only be owned by FELDA A. It would have been ultra vires for such land to be transferred to FELDA H.
Please recheck your sources.
observer
I think it is only fair that you substantiate your claims instead asking me to check and recheck!