FGV privatization must be justified, says KWAP

KUALA LUMPUR: The move to privatise Felda Global Ventures Holdings Bhd (FGV) must be backed by sufficient rationale before the proposal is implemented, says Retirement Fund Inc (KWAP).
KWAP Chief Executive Officer Datuk Wan Kamaruzaman Wan Ahmad said any decision to de-list the counter from Bursa Malaysia must be justified.
"This is because many people have invested in it (FGV), and probably there are people who may lose money also. The justification must be there," he said when commenting on FGV's possible delisting.
Earlier, he moderated a session on 'Investing in Values -- The Rise of Sustainable and Responsible Investing' at the International Fund Forum 2017 here yesterday.
"The proposal to take FGV private must come at the right price. If such price will make us incur losses because the asset value of FGV is higher than the take-over price, why should we agree," asked Wan Kamaruzaman.
Last week, newly-appointed Federal Land Development Authority (Felda) Chairman Tan Sri Shahrir Samad was reportedly quoted as saying that there was a possibility of delisting FGV.
Aside from Felda's direct 17.29% shareholding, it was reported that Felda Asset Holdings Co Sdn Bhd and Koperasi Permodalan Felda Malaysia Bhd owned stakes of 13.66% and 5.74%, respectively, in FGV.
KWAP itself holds 4.98% in FGV while Lembaga Tabung Haji (7.78%) and Amanahraya Trustees Bhd (4.13%) held the remaining equity. – Bernama