KUALA LUMPUR (July 11): FGV Holdings Bhd (FGV) today refuted claims made by the Persatuan Anak Peneroka Felda Kebangsaan (ANAK) in a video that it bought a 51% stake in Felda Holdings Bhd (FHB) below market price.

Responding to a video posted on a Youtube social media account, FGV in a statement today said ANAK's assertions were incorrect, causing misunderstanding and confusion involving separate transactions that occurred at different times.

It was stated in the video that FGV had acquired a 51% stake in FHB from its substantial shareholder Koperasi Permodalan Felda (KPF) for RM2.2 billion.

The RM2.2 billion was alleged to have been far below the market value of the 51% block in FHB and also, that it was far less than the RM6 billion paid to FELDA for a 49% stake in the same company.

The statement clarified FGV acquired FELDA’s 49% stake in FHB for RM1.57 billion cash, not RM6 billion as reported.

Subsequent to its listing, FGV went on to buy the remaining 51% sake in FHB from KPF in 2013, for RM2.2 billion cash, the statement added.

FHB was jointly owned by FELDA and KPF. FGV, meanwhile was a wholly-owned subsidiary of FELDA, prior to its listing.

“Following FGV’s listing in 2012, Felda raised RM5.5 billion as part of its offer for sale of shares in FGV,” FGV added.

The transactions were guided by independent advisors, approved by the boards and shareholders of FGV, KPF, FELDA, and were appropriately and publicly disclosed, the statement read.

At midday break, FGV dipped 0.66% or 1 sen to RM1.51, with 1.21 million shares transacted.