FGV: No easy job to regain investors’ faith

Regaining the faith of investors on Felda Global Ventures Holding Berhad (FGV) is not as easy as it sounds.

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FGV Holdings Berhad (FGV) has requested the Non-Government Organisation (NGO) representing the settlers of Felda, ANAK to contact the company for further enquiries after the NGO made false and misleading statements.
FGV Holdings Berhad (FGV) has requested the Non-Government Organisation (NGO) representing the settlers of Felda, ANAK to contact the company for further enquiries after the NGO made false and misleading statements.

By Norlaile Abd Rahman

KUALA LUMPUR – Regaining the faith of investors on Felda Global Ventures Holding Berhad (FGV) is not as easy as it sounds.

Its former President, Tan Sri Isa Samad confidently chirped that the share price of FGV will rise after the crisis involving the management of the world’s biggest palm oil company ends.

However, to the ‘big boss’ of a renowned investment organisation in Malaysia, the investors’ sentiments towards the brain child of the Prime Minister has depleted long before the ‘war’ between the its board of directors and the senior management of FGV.

To the renowned investor and corporate figure, the investors have long lost their faiths on the company. Long before its Chief Executive Office Datuk Zakaria Arshad and three other senior managements were forced to take indefinite leave.

“It did not happen yesterday. The talks on the inabilities of the management had taken place for quite some time and it created doubts amongst in investors to dump in capitals for the company.

“The FGV share price dropped more than 50 percent from its Initial Public Offering (IPO) and it’s not easy for it to recover as the investors are not confident with Malaysia’s biggest palm oil company. It had dragged for several years,” he said while expressing his sympathy to the settlers who had to be in debts when FGV share price dropped more than they can imagine.

The Federal Land Development Authority (FELDA) is the biggest shareholder of FGV.

He said, investors stayed away from FGV as they do not wish to see their investments burn on the expense of a weak management and the lack of integrity. They have been watching the development of the company closely after its listing.

FGV was the second biggest public listing in the world after Facebook in 2012. It managed to raise RM10 billion of funds from the IPO.

“The most important elements in a company are sound management system and integrity.

“The investors will definitely shy away from the company if these two main criteria are not the priorities of the management and the board of directors,” he said.

He who refused to be named said that it is not easy to recover the sentiments linked to the cases which involves integrity crisis of the management and administration.

It cannot recover within a short time. To make the matter worse, there is no total grassroots reformation to convince the investors, he said while feeling sorry for the investors, especially the settlers who held on to FGV’s share since its listing.

FGV was listed in June 2012 at RM4.55 per unit. Its price has consistently dropped and it is currently trading around RM1.60 per unit.

To further exacerbate the situation, its management and board of directors accused one another for misconducts and power abuse, forcing the Malaysia Anti-Corruption Commission (MACC) to intervene.

Realising that the FGV share price needed protection from further slip and the company and even the whole institution’s reputation was at risk, Prime Minister, Datuk Seri Najib Tun Razak took a rapid decision to replace Isa with Tan Sri Sulaiman Mahbob.

The former Director General of Economy Planning Unit was given the mandate to reform the organisation and bring the brain child of the Prime Minister to greater heights.

Nevertheless, there is no formal announcement on the timeframe given to Sulaiman, who is also a former member of the FGV board of director to do the reformation. – MalaysiaGazette

Related articles on FGV crisis:

Isa quits FGV, leaving for SPAD

Isa to leave FGV?

FGV: MACC to focus on 6 issues

I did no wrong, why should I resign? – Isa Samad

MACC collected FGV documents from Menara Felda

Defending my position to protect FGV – Zakaria

Zakaria can report to MACC if he wishes – Isa Samad

FGV: Zakaria’s forced leave in accordance to procedure

 

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