20/04/2012 (The Star) - The controversial Koperasi Permodalan Felda (KPF) EGM ended on a positive note yesterday with a majority of the representatives voting in favour of Felda's investment arm, Felda Global Ventures Holdings Bhd's (FGVH) listing on the main market of Bursa Malaysia.

Industry sources said this latest twist to the FGVH listing saga would paved the way for the disposal of KPF's 51% stake in 10 subsidiaries of another Felda investment unit, Felda Holdings Bhd to the proposed listed-entity FGVH.

In return, KPF would be given a 37% stake in FGVH post listing and provide the mandate for the FGVH board to restructure the enlarged entity, encompassing FGVH and Felda Holdings.

“Basically the entire business structure of FGVH post-listing will go back to its orginal plan. Felda Holdings businesses will be incorporated to be part of FGVH, while KPF in turn will become a substantial shareholder of FGVH post-listing,” said an industry source.

Felda settlers, via KPF, holds a 51% stake in Felda Holdings, which in turn is a 49% subsidiary of FGVH. The statutory body under the Prime Minister's Department, Federal Land Development Authority, meanwhile has a 100% stake in FGVH.

Last February, when the previous KPF EGM was cancelled due to an interim court injuction, Felda chairman Tan Sri Mohd Isa Abdul Samad had said that Felda would go ahead with the proposed listing of FGVH, even without the direct involvement of the cooperative.

Instead, a special-purpose vehicle will be created to provide for the Felda settlers' interest in the listed-entity FGVH, he added.

Earlier this month, FGVH group president Datuk Sabri Ahmad had reiterated that FGVH was on track for a listing on Bursa by June.

The listing would be preceded by a windfall to reward Felda's first-generation 112,635 settlers.

Meanwhile, Reuters quoted Deputy Minister in the Prime Minister's Department Datuk Ahmad Maslan as saying that that 88% of 1,250 representatives from the KPF had voted for the initial public offering yesterday.

It said the FGVH listing would provide Malaysia's US$27bil palm oil sector with more financial firepower to compete with Indonesia and free up capital for the Government.

“It went well,” Ahmad told Reuters. Felda, via FGVH, owns the rest of Felda Holdings which reported a pre-tax profit of US$252mil in 2010 from processing palm fruits from the farmers. and running the land authority's estates.