Felda defends FGV's Tradewinds stake sale price

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Federal Land Development Authority (Felda) chairperson Mohd Isa Samad has defended its subsidiary Felda Global Ventures (FGV)'s move to sell its stake in Tradewinds (M) Bhd at RM9.30 per share.

According to Malay-language daily Utusan Malaysia , Isa said the decision was the result of careful deliberation and not meant to benefit any particular individual.

"We chose to dispose of the shares as we felt that the price offered was fair. But critics can only do what they do best, that is to criticise," he is quoted as saying.

isa samad interview 150509 Isa ( left ) added that Felda's moves often came under the microscope because it dealt with settlers who represented a significant voting bloc.

"If there are no voters involved, no one would care," he said.

Felda and subsidiary Felda Asset Holdings Company, own a collective 37 percent of the FGV.

KiniBiz on Wednesday had reported that analysts had questioned the price at which FGV was selling its 20 percent stake in Tradewinds to companies owned by tycoon Syed Mokhtar al-Bukhary.

The offer accepted is at least 30 sen cheaper than fair value, according to independent advisers M&A Security. However, M&A Security said the offer price was reasonable.

The analysts argued that FGV could have negotiated for a higher price, considering that FGV's stake in Tradewinds was crucial to the latter's privatisation plans.

FGV closed at RM4.50 yesterday, 5 sen below the IPO price.

KiniBiz is a new business portal to be launched later this month.


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