30/04/2012 (Bernama) - Koperasi Permodalan Felda (KPF), the organisation of settlers, families and staff equity ownership in Felda will have an opportunity to be involved in the third biggest initial public offer (IPO) in the Southeast Asian region.

Felda Global Ventures (FGVH) shares can be attained by KPF through a share acquisition from Felda Holdings but what the former will be able to stand to hold would be less than initially intended.

The original plan was for KPF to swap its 51 per cent stake in Felda Holdings for 37 per cent stake of FGVH.

Now, this 37 per cent will be divided between Felda Holdings (17 per cent) and a new trust fund (20 per cent) established to look after the interest of the settlers.

This entity would then disburse its dividends from FGVH profits to the approximately 112,000 settlers directly.

KPF will be left with 17 per cent of FGVH post-listed shares which can be acquired from Felda Holdings when negotiations between the KPF Board and FGVH on the terms for the disposal of its stake in Felda Holdings to FGVH as part of the listing can be concluded.

KPF had finally agreed on April 19 during its EGM to do so conditionally but given the period left before the target listing by the end of June, it would not be feasible to hold the extra discussions to address their terms.

The decision had been delayed due to a court injunction filed by eight settlers early February to halt an earlier EGM in order to prevent a vote to decide on the share swap.

A legal challenge they mounted has since been dismissed.

FGVH CEO Datuk Sabri Ahmad in an interview with Bernama said that from the beginning, it has been pointed that the interests of settlers would be of top priority.

"We need to keep the interest of the settlers as a top concern as they are the backbone of our entire business structure.

"Windfall payments will be given out to the settlers on May 8, they will also continue to receive dividends from KPF from profits earned through KPF's 51 per cent stake in Felda Holdings and blue share forms will be offered to all settlers who want to jump in on our IPO bandwagon," he explained.

"I want to assure our settlers once again that never in our operations their interests will be overlooked because we need them."

FGVH is the third-largest oil palm plantation operator in the world based on planted area, while its 49-per cent-owned unit, Felda Holdings, is the world's largest producer of crude palm oil.

"We need to go by this because FGVH is a business, we are all for profitability and want to capitalise on a very good time to launch our IPO," he added.

The listing of Felda Global Ventures Holdings Bhd (FGVH) will see up to 2.19 billion shares being offered.