KUALA LUMPUR (June 20): Felda Global Ventures Holdings Bhd (FGV) will actively reach out to shareholders to soothe concerns on the plantation group's business dynamics, The Edge Malaysia business and investment weekly (Edge Weekly) reported in its latest June 22-28 issue.
Edge Weekly quoted FGV (fundamental: 1.15; valuation: 1.4) CEO Datuk Mohd Emir Mavani Abdullah as saying the company had noted concerns brought up by shareholders like the Employees Provident Fund (EPF) on FGV's inclination to overpay for its assets.
The EPF is against FGV's planned acqusition of a 37% stake in Indonesia’s PT Eagle High Plantations Tbk from the Rajawali Group besides the purchase of Rajawali’s sugar project for RM2.8 billion.
Mohd Emir said : “We will talk to them, and not just EPF. We are going to communicate with all our major shareholders on what is the way forward for the company on a one-to-one basis. The reasons to
stay invested are simple: number one is that our strategic and transformation plan will begin to
"Number two is the bump in earnings that the company will derive in the next couple of years. We have the projections and figures and we will share them with shareholders soon,” he said.
It is interesting to note that the EPF had ceased to become a major shareholder in FGV last Monday (June 15).
In a statement to the exchange, FGV said the EPF had sold 8.2 million shares in the company on that day. FGV's annual general meeting was held the following day.
Yesterday (June 19), Felda Global shares rose seven sen or 4% to close at RM1.75 for a market capitalisation of RM6.38 billion.
The stock had fallen 20% this year compared to the FBM KLCI's 2% decline. For a better understanding on Felda Global, kindly pick up and read the latest issue of Edge Weekly.
(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)