Friday 29 Mar 2024
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KUALA LUMPUR (March 20): The Federal Land Authority (FELDA) registered RM1.21 billion in unrealised losses that came from its holdings in Felda Global Ventures Holdings Bhd (FGV), according to Deputy Minister in the Prime Minister's department Datuk Razali Ibrahim.

According to Razali, FELDA has a total stake of 33.67% in FGV, with a direct stake of 21.25% and indirect holdings of 12.42%, which is held via its wholly-owned subsidiary Felda Asset Holdings Company Sdn Bhd (FAHC).

"Up to Dec 30, 2016, based on its direct holdings of 21.25%, FELDA has recorded unrealised losses of RM1.2 billion. Meanwhile, FAHC, a wholly-owned subsidiary of FELDA which holds 452.92 million shares in FGV, has recorded RM9.36 million in losses.

"This brings the total losses to RM1.21 billion," he said in a written reply to Sg Petani MP Datuk Johari Abdul's query.

However, he said these losses were not recorded in FELDA's financial statements, as FGV is classified as an associate to FELDA.

"Therefore, FELDA's holdings in FGV [are] recorded as 'investment in associate' whereby FGV is recorded at cost of RM3.37 billion in its financial statements. This is in line with MFRS 128 — Investments in Associates and Joint Ventures," he said.

Razali said FELDA continues to give full support to FGV's plans to improve the listed company's share price and financial performance, adding that FELDA cannot interfere with the management of FGV, given that the company is listed on Bursa Malaysia and subject to the regulation of Securities Commission Malaysia.

 

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