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KUALA LUMPUR: Felda’s compensation to FGV Holdings Bhd following the termination of a land lease agreement (LLA) related to its properties will be less than the RM3.5 billion to RM4.3 billion anticipated by the company.
The chairman of the ad hoc working group created to address the Felda issues, Abdul Wahid Omar, said today that the matter will be further deliberated with the inclusion of FGV.
“Felda will likely 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 he expected to receive.
Wahid added that the amount to be paid to the plantation would also include its 68 palm oil mills.
“The intention is to take over the steelworks as well. We are not only talking about the plantation, but it must also come with the mills ”.
The mills, as reported by FGV through its recent statement, only represent 30% of the bunches of fresh fruit from Felda farms.
The LLA refers to farms owned by Felda for a total of 350,733ha that were leased to FGV for 99 years as of November 1, 2011.
On Wednesday, the Prime Minister’s Department (Economy) Minister Mustapa Mohamed said in a statement that the termination of the LLA and the issuance of sukuk worth RM9.9 billion by Felda were among the proposals approved by the Cabinet. to ensure your recovery.
Wahid also revealed that Felda intended to divest its assets, both abroad and domestically, to ensure smooth cash flow.
On this, Felda chairman Idris Jusoh said that the federal land development authority owned assets in London and Kuching, and several hotels in the country.
“Before disposing of these assets, we must consider their value. For example, we received an offer of £ 300 million for our London asset. But we thought, maybe we should wait.
“In two or three years, maybe we can get a higher offer, even £ 500 million.
“So maybe this is not the time for us to put our assets aside. When the time is right, when the price is right, we will do it, “he said.
