.JPG "Khairil Nizam Khirudin said the move would aid in Felda’s rehabilitation and provide new business opportunities to its settlers. — Picture by Mierza Zulyana")
KUALA LUMPUR, Dec 9 — Perikatan Nasional (PN) Youth chief Khairil Nizam Khirudin today lauded the government for its role in the Federal Land Development Authority’s (Felda) proposal to take over FGV Holdings Bhd (FGV) that was announced yesterday.
In a statement today, Khairil, who is also the PAS Youth chief, said the move would aid in Felda’s rehabilitation and provide new business opportunities to its settlers.
“PN Youth would like to express its congratulations and thanks to the federal government for the proactive efforts to take back FGV by Felda.
“We believe this acquisition will enhance Felda’s ability to control farmland and the integration of FGV’s value chain. This would allow Felda to provide an open space for the new generation of settlers to participate in the farm-based agro business market, as well as to explore downstream businesses such as the sale of fertilisers and pesticides,” he said.
Khairil said the takeover would also serve Felda’s efforts to take back land that is currently on a 99-year lease to FGV through a Land Lease Agreement (LLA).
Furthermore, he said it would aid in Felda’s re-acquisition of oil palm processing plants as well as the reviewing of other existing agreements.
“PN Youth is confident that this effort shows the federal government’s complete commitment to rehabilitate Felda, including the restructuring Felda management,” he said.
Khairil also praised the government’s RM400 million aid set to assist Felda and its settlers, which was announced in the tabling of Budget 2021.
“Congratulations to Prime Minister Tan Sri Muhyiddin Yassin and the leadership of the federal government. God willing, PN will continue to defend the welfare and future of the settlers as well as work towards the sustainability of Felda,” he said.
Yesterday, Maybank Investment Bank Bhd (Maybank IB) announced that Felda is proposing to take FGV private, after acquiring 13.88 per cent of the latter’s shares from two vendors for a total of RM658 million.
The acquisitions from Kumpulan Wang Persaraan (Diperbadankan) or KWAP, and Urusharta Jamaah Sdn Bhd will increase Felda’s stake in FGV from 21.24 per cent, to 35.12 per cent.
Upon completion of the proposed acquisition, Felda, together with persons acting in concert with it (PACs), will collectively hold more than 50 per cent of FGV shares.