KUALA LUMPUR, June 16 — Employees Provident Fund (EPF) chief executive officer, Datuk Shahril Ridza Ridzuan, said he hopes Felda Global Ventures Holdings Bhd (FGV) will address the valuation concerns related to PT Eagle High Plantations (EHP) stake purchase.
Shahril Ridza today confirmed that the EPF’s representative questioned the rationale behind the US$680 million, or RM2.55 billion, acquisition of EHP, particularly the generous premium reportedly accorded to the deal, at FGV’s annual general meeting (AGM) yesterday.
“We expressed our view on the announcement that have been made in relation to their (FGV) proposed acquisition, but we note basically the deal is subject to the due diligence being undertaken, and subject to the shareholders’ vote in the future.
“There was no vote taken on this issue yesterday,” he told reporters after attending the ‘In the Spotlight’ event at the Bursa Malaysia today.
Shahril Ridza said the EPF’s representative yesterday expressed the view based on the reported facts that had been released so far.
“That was what EPF always does. Any issue or concern that we have, we will raise it at the company’s meeting, like at FGV’s AGM.
“We had expressed our concern, but we have not express or made any decision on how we are going to vote on this transaction. Hopefully, they (FGV) would have address this issue when the time comes to vote,” he added.
Meanwhile, FGV yesterday reportedly said it would decide by August on whether to proceed with the acquisition of EHP or otherwise.
FGV Chief Executive Officer Datuk Mohd Emir Mavani Abdullah said the deal’s fate would rest on the satisfactory completion of the due diligence being undertaken and shareholders’ approval at an extraordinary general meeting slated for August.
FGV is proposing to buy a 37 per cent stake in EHP from its controlling shareholder, Rajawali Corporation, for some US$680 million, of which US$632 million will be paid in cash for a 30 per cent stake, while the remaining 7.0 per cent stake will be settled via an issue of 95 million new FGV shares.
EPF currently holds just five per cent stake in FGV, as compared to nearly 10 per cent holdings when the group was listed in 2012, said Shahril Ridza.
Other major shareholders of FGV are Lembaga Tabung Haji, Retirement Fund Incorporated (KWAP) and the Pahang government, which hold 7.8 per cent, 5.6 per cent and five per cent stake, respectively.
Shahril Ridza was one of the panellists at the event hosted by the local bourse, which highlighted on the FTSE4Good Bursa Malaysia Index and the value proposition for environment, social and governance (ESG) investment.
Also present at the event were Bursa Malaysia Chief Executive Officer Datuk Tajuddin Atan, and fund managers’ representatives. — Bernama
