KUALA LUMPUR: FGV Holdings Bhd (FGV) is waiting for Federal Land Development Authority (Felda) to contact it over the land lease agreement (LLA), which was signed on Nov 1,2011.
According to FGV’s statement, it is prepared to follow the procedures outlined in the LLA, once it receives notice from Felda.
It followed FGV’s statement on Oct 20 that said the LLA specified that assets involved were estates that did not include land cultivated by existing Felda settlers, and did not include FGV’s palm oil mills.
Currently, the size of Felda land stands at more than 850,000ha and the land owned by Felda settlers at 450,632ha.
As at Aug 28, Felda’s shareholding was 21.24% and Felda Asset Holdings Company Sdn Bhd’s (FAHC) shareholding was 12.42%.
Subsequently, a Felda representative was placed on the board of directors of FGV.
Koperasi Permodalan Felda Malaysia Bhd’s (KPF) shareholdings is 4.751%.
On June 29,2018, the company’s name was changed to FGV Holdings Bhd with the approval of all shareholders.
FGV provides services, technical support and planting materials for its estates, settlers, and smallholders. Felda settlers on the other hand supply fresh fruit bunches to FGV’s mills.
“The LLA states that the amount payable to Felda is RM248mil (based on the hectarage) plus 15% of the operating profit from LLA land yearly.
“From 2016, there was a decrease in the LLA fixed payment to Felda due to adjustments in hectarage leased.
“This decrease was due to several reasons including land acquisition by Felda, surrender of land to Felda for the purpose of mining, encroachment to third party land, overlapping of mill land as well as the reconciliation process between land title and the Department of Survey and Mapping Malaysia, ” FGV said in the statement.
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