KUALA LUMPUR, June 18 — Institutional funds such as Lembaga Tabung Haji must join the Employees Provident Fund (EPF) to oppose Felda Global Ventures Holding’s (FGVH) overpriced bid to buy into an Indonesian plantation, DAP’s Tony Pua said today.

Pointing out that response to the proposed deal was overwhelmingly negative from both market analysts and shareholders, the Petaling Jaya Utara MP said the EPF was fully justified in expressing its concern about FGVH’s US$680 million bid for a 37 per cent stake in Eagle High Plantations.

“Besides the EPF which owns a 5 per cent stake in FGV, other major shareholders include Lembaga Tabung Haji, Retirement Fund Incorporated and the Pahang government, which hold 7.8 per cent, 5.6 per cent and 5 per cent, respectively.

“The other government entities which must raise their objections to the deal are Lembaga Kemajuan Tanah Persekutuan (Felda), Felda Assets Holding Company and Koperasi Permodalan Felda Malaysia owning 20 per cent, 13.66 per cent and 5.75 per cent respectively.”

Collectively, these funds have a 62.8 per cent stake in FGVH that Pua said was sufficient to block the firm’s proposed purchase, which another DAP MP yesterday noted was a possibly “high risk” venture based on a report by US-based environmental risk analysts Chain Reaction Research.

Yesterday, EPF chief executive Datuk Shahril Ridza Ridzuan said that the fund’s representative had questioned FGVH over its rationale for paying the high price for Eagle High.

“We expressed our view on the announcement that have been made in relation to their (FGVH) 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,” he was quoted as saying by national news agency Bernama.

Aside from the above funds and agencies, Pua also pressed Prime Minister Datuk Seri Najib Razak and his Cabinet to block FGVH’s deal, which has been negatively received in Bursa Malaysia since it was announced.

He further questioned why a Malaysian firm was being used to “enrich” Indonesian magnate Peter Sondakh, who controls the Rajawali Group that bought Eagle High just six months ago for about half the price it is getting from FGVH.

During the weekend, former New Straits Times group chief editor Datuk A. Kadir Jasin categorised Sondakh as Najib’s “advisor” on Indonesian affairs.

FGVH on Friday announced that it will acquire 37 per cent of Eagle High for US$680 million or IDR775 per share during a time when the stock was trading at IDR450 on the Jakarta Stock Exchange.

FGVH fell to RM1.65 on Monday on the first day of trading since the firm announced that it will buy 37 per cent of Rajawali Group’s Eagle High Plantation for US$680 million in cash and stocks.

It also represents an over 60 per cent drop in value from the RM4.55 when Felda was first listed in 2012, in the biggest market listing of the year behind social network Facebook.

One analyst firm predicted that the conglomerate’s plunging share value and rapidly depleting reserves could put it at risk of losing its blue chip status, which could prompt a further exodus of investors.