Koperasi Permodalan Felda cancels EGM
(Business Times) – The highly anticipated drama at Koperasi Permodalan Felda Malaysia Bhd (KPF)’s headquarters here today fizzled out when it cancelled its extraordinary general meeting (EGM).
In a statement yesterday, the 224,000-strong cooperative said the meeting was called off following the Kuantan High Court’s temporary injunction blocking the transfer of shares from the cash-rich cooperative to Felda Global Ventures Holdings Bhd.
Felda Global is on its way to a listing on Bursa Malaysia, expected to be as early as May.
“The cancellation is due to the Kuantan High Court order, through an interim injunction dated February 17, 2012,” KPF secretary Abidin Abd Rahman said in a statement yesterday.
Prime Minister Datuk Seri Najib Razak had been scheduled to attend the event. Last week, eight settlers who are members of
the KPF filed an application at the same court for an injunction to block the share transfer from KPF to Felda Global or for discussing it at the EGM.
It was the third application for an injunction against KPF. The National Felda Settlers Children’s Association (Anak) had filed a similar action twice, one to prevent KPF from holding its EGM end of last year, and the other today.
Lawyer Mohd Haris Abdullah, representing the settlers, said the application was made to prevent KPF from disposing of all or part of its equity in Felda Holdings Bhd to Felda Global.
KPF owns 51 per cent of Felda Holdings while the remaining 49 per cent is owned by Felda Global. Among the grounds for the application was that the KPF’s proposal to dispose of its equity in Felda Holdings and other subsidiaries, worth RM3.13 billion, to Felda Global would not benefit them or KPF shareholders.
The settlers also claimed that the delegates who would attend the February 22 meeting were never given the mandate by KPF members to represent them at the EGM.
National Association of Smallholders Malaysia president Datuk Aliasak Ambia said the EGM was cancelled probably due to, among others, the non-compliance with the Cooperative Act and the cooperative rules and regulations.
“KPF must do its homework first before carrying out the EGM. But I see this as temporary as the majority of settlers are all for the listing.
“The cancellation is good as it gives members more time to reflect on electing new board members such as a new chairman, secretary or treasurer at the next elections.”
An analyst at a local brokerage said it was unlikely that the listing would be derailed as the government is the ultimate owner of Felda.
“The Felda management must resolve this fast to build up investors’ confidence,” said the analyst.
Felda chairman Tan Sri Mohd Isa Abdul Samad said the EGM cancellation would not derail the listing, which is on track for as early as May.
He declined to elaborate as he did not want to contravene the Securities Commission listing rules.
Felda Global is the commercial arm of the government-owned Federal Land Development Authority (Felda). It has operations in 11 countries, partly contributing to Felda’s annual revenue of more than RM20 billion.
