FGV share price higher despite spat with Felda over land lease agreement issue

KUALA LUMPUR, Nov 3 — FGV Holdings Bhd’s (FGV) share price was higher, increasing one sen to RM1.04, in the early trading session, despite being embroiled in the land lease agreement (LLA) issue with the Federal Land Development Authority (Felda).

At 11.05am, a total of 1.74 million shares changed hands.

In a filing with Bursa Malaysia yesterday, FGV urged Felda to stop any further media releases on the matter and to discuss with it prior to releasing a joint statement on the agreed terms in accordance with the terms and conditions of the LLA.

The plantation company said its chairman, Datuk Wira Azhar Abdul Hamid had written to Felda chairman Datuk Seri Idris Jusoh informing him that the notice to terminate the LLA was not forthcoming up to this date.

Felda Special Task Force chairman Tan Sri Abdul Wahid Omar announced the move on Oct 30.

On Oct 28, Minister in the Prime Minister’s Department (Economy) Datuk Seri Mustapa Mohamed said the Cabinet has agreed to the recommendation that Felda terminates its LLA with FGV Holdings.

However, he did not mention the compensation sum that Felda would need to pay to FGV, in which it holds a 33.66 per cent stake, as a result of the LLA termination. — Bernama