BANGI: The Federal Land Development Authority (Felda) is an intermediary for the Malaysian government in the acquisition of Indonesian oil palm planter, PT Eagle High Plantations Tbk (EHP).
Chairman Tan Sri Shahrir Abdul Samad said Felda was selected due to its expertise in managing oil palm plantations.
“We are representing the Government of Malaysia on two levels -- the management and board of directors of EHP,” he told reporters after the launching of Felda D’Saji’s 14th branch in Bangi on Wednesday.
He said Felda had been allocated two seats on the board of directors, of which one had been appointed, while one position at the management level had been filled.
“We have one person who is stationed in Jakarta permanently. He was a former employee of Felda Global Ventures Holdings Bhd (FGV) and is being tasked with RSPO (Roundtable on Sustainable Palm Oil) and investor relations on behalf of EHP.
“He has been there about a month, representing the investment of the Government of Malaysia,” he said.
Shahrir said Felda was also looking into the possibilities, directly or through FGV, of venturing into the downstream business in Indonesia through EHP.
“Under the share purchase agreement for EHP, among others, we are given the opportunity to be involved in the downstream sector in Indonesia, within the EHP group,” he said.
Felda, through Felda Investment Corp, concluded the acquisition of a 37% stake in EHP from Rajawali Group in a deal worth RM2.26bil. - Bernama
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