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KUALA LUMPUR: Compensation from FELDA to FGV Holdings Bhd
upon termination of a land lease (LLA) related to its properties will be less than RM3.5 billion – RM4.3 billion projected by the company.
The chair of the special working group (STF) established to address the Felda issues, Tan Sri Abdul Wahid Omar, said today that the matter will be further deliberated with the inclusion of FGV.
“Felda will probably pay less than FGV expects after the termination of the LLA,” he said at a press conference here, regarding a statement from FGV yesterday about the amount of compensation it expected to obtain.
He said Felda will also buy palm oil extraction assets from FGV.
The LLA refers to farms owned by Felda for a total of 350,733 hectares that were leased to FGV for 99 years as of November 1, 2011.
On Wednesday, the Prime Minister’s Department (Economy) Minister Datuk Seri Mustapa Mohamed said in a statement that the termination of the LLA and the issuance of sukuk worth RM 9.9 billion by Felda were among the proposals approved by the Cabinet to ensure their recovery. . – Bernama
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