A study has established that 65 percent of the senior managers in the Federal Land Development Authority (Felda) believe that the  Felda Global Ventures Holdings Bhd (FGVH) listing exercise will fail as the organisation is not prepared for this.

An independent consultant appointed by Felda - Boston Consulting Group - also found that 55 percent of the senior management were not prepared for the proposed listing, and that only 20 percent supported the exercise.

azlanThe study took into account the views of the top 30 senior managers in Felda.

The findings were presented to the FGVH steering committee for listing, headed by Felda chairperson Isa Samad (left), on Nov 18 last year

According to PKR strategy director Mohd Rafizi Ramli, BCG was appointed to study how prepared Felda was for the listing.

“We have obtained a copy of the BCG report, which shows the results based on responses from the 30 Felda senior managers, the majority of whom are opposed to the listing.

“This proves there is resistance from the senior managers themselves to the BN’s intention to list FGVH. Those people who are working inside Felda feel the listing will bring more damage to Felda and the settlers.

“The resistance shown by the Felda senior managers will further trouble the listing. Prime minister Najib Abdul Razak and Isa should explain why these opposing views are not taken into consideration,” Rafizi said.

He hopes that should the FGVH listing goes through, these managers who oppose it would not be sidelined or replaced with new faces who will be ‘yes men’.  

Old trees affect exercise

A check of the prospectus for the FGVH Initial Public Offering shows that 53 percent of the oil palm trees in Felda plantations are old, 31 percent are young and 16 percent are prime or mature trees.

NONEPKR’s investment and commerce bureau chairperson Wong Chen (seated left, with Rafizi) said Wall Street Journal had published a report on the IPO of the FGVH, where among the factors raised is the profitability of its listing due to the profile of the oil palm trees.

This, Wong said, was in contrast with another Malaysian public-listed company that has 78 percent prime trees, 15 percent young and seven percent old trees.

“Normally a company will undergo listing if its financial instruments are sound. However, is FGVH’s financial standing truly sound? Can you imagine that the company’s reliance is mainly on 16 percent of its capability and potential for its IPO listing?” he asked.

“So if FGVH is not ready to list because of its weak fundamental, then why rush to have it listed. Is it to benefit somebody who maybe making money out of the IPO?”

Wong said the FGVH IPO would be one of the largest, aiming to raise RM10.2 billion, and the second largest in the world this year. The banks and advisers who are helping with the IPO will make millions in the listing exercise.                               

“We demand that Felda and the government disclose fully itemised fees to be received by the bankers and advisers as a result of this nonsensical listing,” he added.

Based on these revelations, PKR has once again questioned the BN-led federal government's true intention for the listing exercise, saying the move should not be politically-motivated.

Some settlers have protested the exercise and have filed legal challenges.

VIDEO | 13.09 mins