http://en.harakahdaily.net/index.php/berita-utama/5684-felda-shares-drop-again-as-anak-fears-loan-burden-on-settlers.html
Share prices of Felda Global Venture Holding dropped another 7 sen today, closing at RM4.78 to continue its steady slide, and whistleblower group National Felda Settlers’ Children Association (ANAK) said the development was worrying because each settler was made to take bank loan to purchase ‘free’ 800 shares.
“Our worry is when it is losing, because then it will be borne by shareholders who bought the shares using loans which must be inclusive of the five percent interest. "Are Felda settlers prepared to take the risk?” asked ANAK chairman Mazlan Aliman as quoted by the Selangorku website.
On prime minister Najib Razak’s promise that the loans would be transferred to Felda so that settlers need to pay interest for next five years at RM50 a month, Mazlan claimed the promise had yet to be materialised. “In some complaints, when settlers queried the bank about the matter, the bank claimed ignorance about the matter (transfer of loans),” said Mazlan, adding that the situation has turned into one of confusion.
Mazlan said ANAK would write to the Agong to seek his response to the memorandum sent by the Save Felda Movement (GSF) during its mammoth rally dubbed 'Himpunan Oren' on July 14. The memorandum touched on how the listing would deprive Felda settlers of land and assets, the negative impact of the 99-year land lease to FGVH, the questionable credibility of Felda chairman Isa Samad, and settlers’ loss of income. The Agong was also urged to use his powers to scrap the listing plan and to distribute the Felda reserve land to the second generation of settlers.
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This is the second largest initial public offering in the world this year after that of Nasdaq's Facebook Inc. It is also the third largest ever IPO in Malaysia. FGVH is the world's third largest oil palm operator, according to business research and consulting firm Frost & Sullivan.
FGVH's proposed listing had met with opposition from some quarters, and which Felda chairman Tan Sri Isa Abdul Samad expects to continue. “I am sure these people will continue to lie and do things to tarnish the image of FGVH,” he said. “They want our share price to drop so that they can agitate the Felda settlers,” he said here yesterday. FGVH's IPO raised RM10.4bil and attracted strong demand from both foreign and domestic investors despite the volatile market conditions worldwide.
Bursa Malaysia chief executive officer Datuk Tajuddin Atan said FGVH's listing had amplified Malaysia's position in global capital markets. “Malaysia has been widely reported to be Asia's top IPO (initial public offering) destination so far this year, ahead of Hong Kong and Shenzhen,” he said. “This has strengthened our quest to become the leading marketplace in Asia.”
Meanwhile, FGVH group president Sabri Ahmad said the company had begun formulating plans and strategies to grow its business. “We will focus on our upstream business to be among the leading players in oil palm, rubber and sugar,” he added.
Cornerstone investors in FGVH include Qatar Holding LLC, Fidelity Investment Management (Hong Kong), Value Partners Hong Kong Ltd, Employees Provident Fund, Permodalan Nasional Bhd, Lembaga Tabung Haji, Kumpulan Wang Persaraan (Diperbadankan), American International Assurance Bhd and Hong Leong Foundation.
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