FGV's half-a-billion ringgit suit - Isa, eight ex-directors told to file defence
In one of the largest breach of duty suits filed by Felda Global Ventures Bhd over its purchase of Asian Plantation Ltd. (APL), nine out of 14 of its former directors were today ordered by the High Court to file their defence statement by Jan 31.
FGV filed the RM514 million suit last month to recover losses it claimed were due to its 2014 acquisition of APL, a Singapore-based company with assets in Sarawak and listed on the London Stock Exchange.
In one of the largest breach of duty suits filed by Felda Global Ventures Bhd over its purchase of Asian Plantation Ltd. (APL), nine out of 14 of its former directors were today ordered by the High Court to file their defence statement by Jan 31.
FGV filed the RM514 million suit last month to recover losses it claimed were due to its 2014 acquisition of APL, a Singapore-based company with assets in Sarawak and listed on the London Stock Exchange.
The company filed the suit accusing the defendants of failing to discharge their respective fiduciary duties, duties of fidelity and/or duties to exercise reasonable care, skill and diligence with regards to the purchase.
Those asked to file their defence were FGV former chief executive officer and president, Mohd Emir Mavani Abdullah, former chairperson Isa Samad, former senior general manager, Rasydan Alias Mohamed, former chief financial officer Ahmad Tifli Mohd Talha, former directors Ismee Ismail, Wan Abdul Aziz Wan Abdullah, Sulaiman Mahbob, Nozirah Bahari and Fazlur Rahman KMM Ebrahim.
All of the above were represented by counsel today.
Former senior vice-president Farisan Moktar, former directors Omar Salim, Noor Ehsanuddin Mohd Harun Narrashid, Yahaya Abdul Jabbar, and Faizoull Ahmad were not represented as they have yet to receive the cause papers.
The directive to file defence was conveyed by High Court deputy registrar Farah Shuhada Ramli after meeting the parties in chambers.
Farah then fixed Feb 12 for case management before Justice Azimah Omar.
FGV was represented by Ang Hean Leng of the firm Lee Hishammuddin Allen and Gledhill, while Isa was represented by Lavinia Kumaraendran.
It was reported that FGV had acquired APL for a total cash consideration of £120 million, or about RM628mil at the time, at a 5.4 percent premium over APL's weighted average price.
Last year, FGV began investigating the deal due to, among others, allegations that much of the land acquired by APL was unsuitable for oil palm plantations.
FGV was listed on the KLSE in 2012. It was the second biggest IPO in the world that year with a reference price of RM4.55.
The prospectus was launched by then prime minister Najib Abdul Razak.
Besides this suit, FGV was reported earlier this month to have filed a second suit for TM12 million against Mavani and Isa alleging that the acquisition of luxury condominiums in Kuala Lumpur was made at significantly higher prices than market value.
Isa was also recently charged with 10 counts of receiving kickbacks of RM3 million over the purchase of a Kuching hotel.
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