White paper reveals Felda made several bad investment decisions

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PETALING JAYA: The Federal Land Development Authority (Felda) has made quite a number of bad investment decisions, according to the White Paper released by the Economic Affairs Ministry.

In addition, it has been revealed that the “put option” in Felda’s deal to acquire a 37% stake in Indonesian planter PT Eagle High Plantations Tbk from PT Rajawali is not as straightforward as it seems.

The acquisition price was 95.86% higher compared to EHP’s market price on the date of the acquisition. However, the forensic studies revealed that Felda would only be able to recoup its investment amount and profit at a rate of 6% a year in Year 5 from the vendor via the “put option” .> EHP goes against its obligation of abiding by the Roundtable on Sustainable Palm Oil .> Company A1 or the major shareholder of company A1 or EHP initiates or consents to judicial proceedings in relation to itself under any applicable liquidation, insolvency, composition, reorganization, etc.

“Early this year, Felda issued a notice to EHP to exercise the put option. What happened? They fought it and refused ,” he said. Furthermore, Bank Negara had issued many questions with regard to the investment structure, benefits of the acquisition and the usage of capital.

 

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Bad investments for Felda, 'great' investment for one's self pockets..

The settlers are on the loosing end. 😥

Vested interest with commission are normally so ... going in with both eyes closed

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