13/12/2011 (The Star) - Despite the controversy surrounding the directive for Federal Land Development Authority (Felda) general manager Datuk Dzulkifli Abd Wahab to go on leave, the Government is not wavering on its plan to list Felda Global Ventures (FGV) on the stock exchange next year, sources said.

The sources added that the listing exercise was still on because of its importance to Felda settlers.

The listing would turn Felda settlers into owners of the listed FGV via the settlers' co-operative, Felda Investment Co-operative (KPF). “The listing is a game-changer for the settlers as they would have a controlling stake in a listed plantation giant.”

Dzulkifli told to go on leave over the
FGV listing issue.

Sources also said that the KPF EGM to be held on Jan 5 to vote on the matter would likely see the majority of representatives vote in favour of the deal, which would pave the way for FGV's listing in March or early April.

Over the weekend, an online news portal reported that Dzulkifli was asked to go on leave for eight months. The article stated that the move was the result of differing views between Dzulkifli and KPF's new chairman, Tan Sri Isa Samad, who replaced the former a few months ago.

The news portal added that Dzulkifli was believed to be against the proposed listing of FGV.

Another recent online media report stated that KPF's removal of some key members of Felda's new top brass from its board could be viewed as a concerted attempt by certain quarters, such as the existing senior management, to undermine the intial public offering (IPO).

The listing of FGV is expected to raise some RM6bil in what could be Malaysia's biggest IPO in 2012. By comparison, the biggest IPO so far this year was Bumi Armada Bhd, which raised some RM2bil.

KPF owns 51% in Felda Holdings while FGV, an entity wholly-owned by the Government, holds the remaining 49%. Felda Holdings is considered a gem for its assets, which include a 880,000 ha plantation landbank as well as profitable agriculture and plantation-related businesses consisting of palm oil mills, refineries, rubber factories, and manufacturing plants.

Under the proposed listing, settlers would swap their 51% stake in Felda Holdings via KPF for 61% control of FGV.

In the first half of this year, Felda Holdings made RM314mil in pre-tax profit on turnover of RM8.9bil. FGV's pre-tax profit for the first half was RM167.8mil on RM1.98bil revenue.