KUALA LUMPUR (June 16): Felda Global Ventures Holdings Bhd’s (FGV) director Datuk Faizoull Ahmad was voted out at the annual general meeting (AGM) today.
In a filing to the Bursa Malaysia today, FGV (fundamental: 1.15; valuation: 2) said that the ordinary resolution 4 to re-elect Faizoull as director of the company was not passed by a majority at the shareholder meeting.
“Hence, Faizoull Ahmad retired from office as non-independent non-executive director pursuant to Article 88 of the Company’s Articles of Association at the conclusion of the 7th AGM held on June 16, 2015,” FGV said.
Faizoull has been a non-independent and non-executive director at FGV since March 15 last year.
Faizoull has extensive experience working in Federal Land Development Authority (FELDA) since 1986, and held various positions including as the administrative officer of budget department and social department, general manager of Felda Wilayah Terengganu, director of FELDA New Generation's Innovation and Development Department and deputy director general of FELDA (Community Development) and director general of FELDA.
Meanwhile, other directors Datuk Dr Omar Salim, Datuk Noor Ehsanuddin Mohd Harun Narrashid, Datuk Mohd Zafer Mohd Hashim and Datuk Mohamed Suffian Awang were re-elected as directors.
On the ordinary resolution 7 of renewal of shareholders' mandate for the existing recurrent related party transaction, 84.33% of the shareholders voted for the resolution but 15.67% were against the resolution.
FGV share price took a beating yesterday after the plantation group announced its proposal to acquire a 37% non-controlling stake in Indonesia’s PT Eagle High Plantations Tbk for US$679 million (RM2.55 billion) cash from PT Rajawali Capital.
Analysts said FGV has overpaid for the equity stake. Also, CIMB Research pointed out that FGV has already paid about 23%, or US$174.5 million as down payment for the acquisition although both parties have yet to sign the sales and purchase agreement.
FGV share price slumped to record low of RM1.65 yesterday, indicating the proposed purchase did not go down well with the shareholders. The stock rebounded today to close at RM1.72, up seven sen or 4.24% today.
The oil palm plantation operator had lost RM12.39 billion or 62.20% of its market value from June 2012 initial offering price of RM4.55 per share. It was also taken out from the 30 FBM KLCI constituent stocks recently.
(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.)