Felcra Bhd is restructuring seven to eight of its existing 13 units into a medium-sized entity and list it on Bursa Malaysia next year.

Its chairperson, Tajuddin Abdul Rahman, said the entity was expected to generate a cumulative profit of RM50 million a year, surpassing the minimum requirement for listing.

“The medium-sized entity has the potential to grow its business when listed.

“Currently these subsidiaries generate businesses internally within the Felcra Group and once listed as a unit, it will become the core and expand its businesses outside Felcra,” he told reporters at Felcra Bhd Management Seminar 2012 in Kuala Lumpur today.

Moving forward, Tajuddin said, Felcra needed to diversify to strengthen itself and not to depend solely on the current core activities such as agriculture, plantation and commodity.

“The diversification into sectors like real estate, livestock, cash crops, education and investment has been approved by the board.

“In five to 10 years, Felcra will become a diversified government-linked company that will generate revenue in the range of RM2 billion per annum,” he said.

Tajuddin said Felcra expected a profit of as much as RM300 million a year by then.

“Currently, Felcra records between RM60 million and RM100 million of profit a year,” he said.

- Bernama