Up to Felda to decide on Eagle High's stake, says Azmin

PETALING JAYA: The government will not interfere with the decision of the Federal Land Development Authority (Felda) to dispose of a 37%  stake in PT Eagle High Plantation to the Rajawali Group.  

Minister of Economic Affairs Datuk Seri Mohamed Azmin Ali said the matter should be resolved amicably.  

"The Felda board has looked into this matter thoroughly and we will not interfere with the decision. I think we should let the process continue.  

"I am not privy to the details, but the position taken is that, we should not interfere with the decision of the board," he told reporters at a Chinese New Year event organised by the Federation of Hokkien Association of Malaysia on Tuesday.  

According to news reports, Felda is seeking to end its deal with Indonesia's Rajawali Group and reclaim US$500 million.  

It is understood that the acquisition of the stake came with a so-called “put option” that provided for the Malaysian concern to sell back the equity interest at the purchase price of US$505.4mil, together with an annual interest charge of 6%, that must be borne by the seller.

The deal made during the previous administration was criticised when it was announced, because of the high premium that Felda had agreed on to buy the stake.  

On another matter, Mohamed Azmin reiterated that the Kuala Lumpur-Singapore High Speed Rail project was suspended until May 2020.

"No workforce is required as of now and until we discuss further the new alignment (and) design for the project," he added.  - Bernama