Koperasi Permodalan Felda Malaysia Bhd (KPF) has cancelled its extraordinary general meeting (EGM) scheduled for tomorrow after being served with an injunction barring it from discussing the listing of Felda Global Ventures Holdings Bhd (FGVH).

The 1,200 KPF delegates were initially slated to vote on a proposal to divest the co-op's 51 percent stake in Felda Holdings Bhd and its 10 subsidiaries, which includes FGVH.

Had the proposal gone through, KPF would have to transfer its business assets to FGVH.

In return, KPF would be given exclusive rights as a 37 percent shareholder in the FGHV once it is listed on Bursa Malaysia’s main board in May.

NONE Five KPF members had applied for the injunction at the Kuantan High Court on Feb 17. The document was served on KPF yesterday.

They expressed concern that transferring the KPF assets to loss-making FGVH would shortchange the smallholders.

National Felda Settlers’ Children's Association (Anak) chairperson Mazlan Aliman said he was grateful that the KPF board had conformed with the injunction.

“This is happy news because Anak has stopped the EGM from discussing FGVH’s listing,” Harakahdaily quoted Mazlan as saying today.

This is the second court injunction issued to KPF. An earlier injunction in December had also forced the cancellation of the crucial EGM.

The injunction has thrown a spanner into the government's efforts to float Felda Global Ventures Holdings' shares in the stock market.

Felda settlers make up the members of KPF. The cooperative was formed in 1980 with the objective of providing settlers with a share of the equities in Felda, the Federal Land Development Authority, and its subsidiaries.

Last week, 120 settlers submitted a memorandum to KPF's board of directors seeking a separate EGM on the matter.

'Felda chief lambasted for fiasco'

Following Anak’s victory, Mazlan has demanded that Felda chairperson Isa Samad resign for “creating chaos”.

NONE “If he refuses, Prime Minister Najib Abdul Razak should sack him immediately,” he said.

Mazlan (left) claimed that Isa had masterminded the listing of FGVH which has unsettled the co-op.

He also accused Isa of manipulating Felda’s publicity unit, warning Felda staff against supporting the opposition and being at ‘war’ with National Felda Settlers chief Shamsudin Othman.

"Anak calls on the prime minister to abort any intention to list FGVH on Bursa Malysia," Mazlan said, adding that the NGO does not oppose efforts to improve Felda's standing and such efforts are already in place.

"Anak’s critical view on the maintenance of the settlers’ land, replanting costs and the grade extraction cost (of oil palm fruits) and other issues are already being addressed by Felda, even though some of these cases are in the courts," he said.

Felda co-op gets court order to halt talks on FGVH