Institute for Democracy and Economic Affairs (IDEAS) chief executive Wan Saiful Wan Jan presenting on the challenges to the delivery of the National Education Blueprint at the Graduate Christian Fellowship education conference in Council of Churches Malaysia at Petaling Jaya on June 21, 2014. FAIHAN GHANI/The Star.
KUALA LUMPUR: The purchase of a 37% equity stake in Indonesia’s PT Eagle High Plantations Tbk (EHP) for US$505.4mil (RM2.26bil) is a good opportunity for the Federal Land Development Authority (Felda) to grow its business, the Institute for Democracy and Economic Affairs (Ideas) said.
“Felda has been wanting to grow and they need the landbank,” chief executive Wan Saiful Wan Jan told Bernama.
Felda on Friday announced the acquisition of Jakarta-listed EHP, paving the way for access to more than 320,000ha of landbank in Indonesia of about 4.4 times the size of Singapore, including more than 125,000ha of planted nucleus.
However, Wan Saiful said with Felda being a government-linked company, it is important that the purchase is funded through a deal that does not create high risk for the Government.
“It would be unacceptable if the deal results in the taxpayers assuming the risk entered into by Felda.
“If the risk is assumed solely by Felda, then I am hopeful that the deal will create the much needed synergy that Felda wants in order to create greater shareholder value,” he added. - Bernama
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