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Sakmongkol ak 47

Tuesday 15 May 2012

FGVH Listing- the game the crooks play

Readers who are interested in reading more vigorous analyses on FGV are advised to read Pirates of Putrajaya.  In the English  language here and in Bahasa Malaysia here. I am offering a less rigorous analysis here as I feel not as competent as the Pirate in technical matters. 
Here is what irks me and I hope it does others too. Felda settlers have given nothing but each felda household is promised and given RM 15,000 each. For what? In return for a promise to vote UMNO and BN in the next elections? And the gnome of the felda chairman says it’s not corruption. The RM 15,000 must be called as what it really is- the price of each settler as seen by the PM. Its bloody corruption.

If not,  how do you explain why the PM gives out the 15,000? Does he do it for purely philanthropic reasons?

What is it that FGV offers for sale? Remember- as the Koperasi Permodalan Felda hasn’t parted off with its 51%, what FGV offers to the public is its 49% interest in Felda Holdings. It can’t and doesn’t have the capacity to offer 100% of Felda Holdings. But you be can sure the PM and his macais are rounding up the deep pocketed boys and telling them- don’t worry boys, we will chop off the heads of the KPF leaders one by one. We will deliver you 100% of Felda Holdings.

Or Perhaps we haven't uncovered yet, the devilish plans they have in store for the  51% which KPF owns in Felda Holdings?

It’s shortchanging the investing public when it can only offer 49% of its interest in Felda Holdings and their valueless businesses abroad which did not make money anyway.
Now, Felda holdings is a different cattle of fish. It is one of Malaysia's largest, and most diversified agro-based enterprises which run the commercial business related to the Federal Land and Development Authority (FELDA), and the vast 880,000-hectare plantation land bank associated with it. It owns 360,000 hectares of land directly and manages 520,000 hectares of land belonging to settlers.

Felda Holdings became a public company on 3 October, 2003. Today, its total capitalization exceeds RM 5 billion with RM 220 million in paid up capital. It employs a dedicated workforce of almost 19,000 employees, complemented by a labor force of 46,795 workers at some 300 estates, 70 palm oil mills, seven refineries, four kernel crushing plants, 13 rubber factories, manufacturing plants and several logistic and bulking installations spread throughout Malaysia and several locations overseas.
Its assets include more than 50 active subsidiaries, associated companies and joint venture companies. It provides technical advice and support to the Felda Group. It has facilities to process rubber and cocoa products, manufacture fertilizers as well as operate several successful auxiliary businesses. Among these are IT, engineering, security, storage and logistic services.
It also does business at the international level it supplies 8% of world palm oil in 2009. It has joint-venture partnerships with large multinationals such as Procter & Gamble and Iffco. It has growing interests in businesses in the United States, Canada, Australia, China, Pakistan, Sri Lanka and South Africa.

But the most important thing to remember is this: FGV holds only 49% of all these. But they have an important partner in crime- the holder of the 1 golden share. The Ministry of Finance.

The non felda citizens of this country do not get any cash handouts. Buy they have the same stature as Felda settlers who have given nothing to UMNO and the government. So, they deserve the same cash handouts as settlers do. Why should the settlers be treated any differently? If ordinary citizens are wrongly treated they should respond the only decent way they can- by not voting in this corrupting government. 

The minister in charge of felda is going ahead with the listing of FGV. He has called those who opposed the listing as accursed bastards- haramjadah. He has described them as thick-skinned if they take the RM 15,000 inducement. By doing so, he has displayed his inherent nature which I have been saying all this while- that Najib solves problems by paying his way through. He is not a leader who inspires the citizens with ideas and ideals. 

There is a vast and barren void that lies between his ears.


bruno,  15 May 2012 at 05:14  

Dato,although I am not that sure and not familiar with how this initial IPO price around RM4.60 is decided,I think that the price is based more or less on present CPO prices.

But based on the negative news of GOM bulldozing for this IPO to go through circulating around,the shares reserved for institutions and the public for subscribtion will be under subcribed.The GLC's will be asked or forced to take up whatever portion is allocated to them.

But whether private funds and the public will scooped up the remainder reserved for them remains to be seen.If the portion reserved for private investors is undersubcribed,the initial opening price of 4.60 will not be asked.

Therefore the offering is a flop and the share prices will open lower and definitely will closed much lower than the opening price.

And commodity markets have been on a bullrun for so many years and eventually will peaked if a top is not already in place.

Unless the GLC's come out and bid the opening and pushed the shares higher the IPO will be a flop.The offering is to large for the GLC's to push and maintain the prices.If they do they will be stuck with all the shares.

Therefore even if the opening is above 4.60 it will definitely closed much lower.So those that subscribed for 4.60 hoping to make a killing will be licking their wounds after the final bell is rung.

bruno,  15 May 2012 at 05:36  

Dato,from what I can see the 15,000is part installments of the money owed to the settlers for being shortchanged of their crops all these years.

Or else would anyone think that the Umnoputras are that so very generous.Did anyone forget that a pretty Mongolian lass was murdered for her commission of only 500,000.

If Malaysians were to look the other way than the FGVH counter,it will be a total failure before the opening bell even rung.That way the robber barons faces will be blushing red and purple.

Anonymous,  15 May 2012 at 06:37  

Guess where is Najib going to get the RM15,000 to pay each of the Felda settlor?

He is committing theft of national proportion!

Anonymous,  15 May 2012 at 08:54  

Thank you Dato' for those kind words. You really hit the nail on the head. FGV only had 49% of Felda Holding. However, they did two things, the first PM signed off the 300k hectares for RM 700/hectare and the second the transferred the entire staff Felda Plantations to FGV. In the Felda Holdings group, Felda plantations is the cash cow, and I am talking about a cow 20 times the size of Kak Jat's feedlot calfes

Anonymous,  15 May 2012 at 09:16  

It all goes back to the Malays. Will they listen to people like you and those educated Anak Felda or allow themselves be cheated by UMNO?

There is so much negative news even before the IPO. Now which idiot from the public is going to buy Felda shares? I won't touch it with a 10-foot pole.
If GLC use their funds to support Felda shares, then all will crumble in no time.
This is going to be a IPO blunder of the century?

Pok Li,  15 May 2012 at 09:28  

The whole episode definitely irks people who understand the game played by Najib and Isa. But I wonder if majority of the FELDA settlers could understand the risk and implication in the long run. The 'opportunity' of getting the RM15,000 is really a big deal to most of them. Mazlan Aliman and his ANAK NGO have thus far done a good job to enlighten the settlers and hopefully will continue with the good work.

Anonymous,  15 May 2012 at 09:36  

A little correction ...

The rental of the land is RM700 fixed plus a certain the proformas P&L the figure is RM500 mil/annum i.e RM1500/hect.

Think this is the big ripoff...

Fair rental wld be about RM3k/hectare i.e RM1bil/annum @ 51% is approximately RM500 mil per annum.At 6% yield..the land is worth RM 9 bil. much are the Felda settlers getting?

Anonymous,  15 May 2012 at 09:39  

Ha ha ha

After IPO ..Again Rakyat gak kena Rompak..ha ha ha..

Kalo' IPO tak capai target, camane Najib nak PRU13..jawabnya ..KWSP gak yang bail out IPO FGV..ha ha ha..

Hampehhh betul..

Anonymous,  15 May 2012 at 09:53  

Kalau peneroka si Lunchai dan Pak Pandir ini rela diri mereka di tipu oleh Najib Isa Samad dan UMNO Baru biarkan lah. Nanti menang bersorak tanah rancangan tergadai.Jangan merintih dan berminta2 untuk dibantu pula kemudian.

Anonymous,  15 May 2012 at 11:09  

Saya tidak berapa faham dengan isu Felda ni. Boleh tak Datuk terangkan dengan lebih mudah lagi.

Anonymous,  15 May 2012 at 11:47  

I know of retail traders accumulating capital to buy felda shares and if they strike, They will sell it off in the first 15min.Reason is the gov WILL push up the price to have the feel good feeling but at the end of the day its gonna be TEARS and self pity for the settlers.
The equties market is not the place to play games.I hope umno will take note.

loveMyKris,  15 May 2012 at 12:43  

There is a vast and barren void that lies between his ears.

hahaha. you hit hard sak.


JohorMali,  15 May 2012 at 12:55  

Dear Datok,
For a change ,try giving your two sen worth of opininon about the short sojourn of Tunku Aziz in DAPland in not more than 3 sentances,please.

ZorroReMasked,  15 May 2012 at 13:25  

Sdr. Sakmongkol,

A minor but important correction...

Through my sources, I have checked and confirmed that there is NO golden share.

The golden share thingy was used too many times to scare a number of people and I finally asked those concern to check with the Memo & Articles of Association (M&A). It was confirmed to me that there is no golden share in FHB.


Anonymous,  15 May 2012 at 15:19  

Dear Sak,
Malaysian politics has descended to gutter politics curtailing and frustrating those who often play a pivotal roles, be they you, Sak, Saudara Aspan, political writers and fellow fighters on your side in determining our nation’s future. We stand firm, united with you both in pursuing them. It looks like Tunku’s case is like our beloved Bapa Malaysia’s scenario – political assassination by “ friends ” in sheep skin. Once hurling a tirade of profanities at him for joining DAP have now miraculously become his instant fans.
Please take good care. Salam.

Anonymous,  15 May 2012 at 17:36  


Naib Presiden PAS Salahuddin Ayub bimbang manipulasi besar akan berlaku dalam pilihan raya akan datang untuk memastikan Perdana Menteri, Datuk Seri Najib Tun Razak terus berkuasa.

"Najib amat terdesak untuk terus berkuasa bagi membolehkan beliau terus melarikan diri dari inkuiri yang menyiasat urusniaga kerajaan Malaysia membeli kapal selam Scorpene yang kini sedang berlangsung.

"Jika Umno tidak lagi memerintah, kerajaan yang baru pasti akan memberikan sepenuh kerjasama kepada Interpol untuk mengheret Najjib menghadap inkuiri tersebut," katanya.

Sebab itulah, katanya, rakyat perlu berhati-hati dan merasa bimbang terhadap kemungkinan manipulasi tersebut.

Salahuddin juga berharap Perdana Menteri dapat menjaga nama baik dan maruah negara serta tidak melarikan diri dari inkuiri itu.

"Kalau Perdana menteri mempunyai integriti dan mahu dilihat sebagai seorang yang bermaruah dan bermoral, beliau sepatutnya memberikan segala kerjasama kepada apa jua proses perundangan yang berkaitan termasuk inkuiri bagi menyiasat urusniaga kapal selam itu," kata Ahli Parlimen Kubang Kerian itu.

Salahuddin juga menyifatkan kenyataan Menteri Pertahanan Datuk Seri Ahmad Zahid Hamidi mengenai perkara itu semakin menimbulkan kecurigaan rakyat dan juga masyarakat antarabangsa terhadap Perdana Menteri.

Zahid berkata, mahkamah Perancis tidak mempunyai kuasa untuk mengarahkan rakyat Malaysia membuat pengakuan dalam inkuiri tersebut.

"Jangan sampai Perdana Menteri dilihat oleh rakyat dan dunia sebagai orang bersalah," kata Salahuddin.

Baginya, perbuatan melarikan diri dari peluang untuk membersihkan nama dan maruah akan menyebabkan seseorang itu dilihat bersalah.

"Orang yang tidak bersalah sentiasa mencari forum yang diiktiraf seperti perbicaraan mahkamah atau inkuiri seperti yang dibuat di Perancis itu untuk membersihkan namanya," katanya.

Najib, kata beliau, tentu tahu kata-kata yang begitu popular di kalangan orang-orang Melayu iaitu "berani kerana benar dan takut kerana salah".

"Orang tak bersalah bersikap berani kerana beliau berada di pihak yang benar, orang takut pula biasanya merasa begitu takut kerana ia bersalah," katanya.

Anonymous,  15 May 2012 at 19:05  

I am glad the bright sparks from the Malay community who were in Cambridge, Oxford and some Ivy league colleges are making their own analyses and making their views known to FELDA owners, openly and secretly. UMNO might just sink itself big time. Greed without limits, ambition without borders, what has this nation come to? Pink forms recipienta, beware.

Anonymous,  15 May 2012 at 20:05  

Dear blog readers,

Look at how rude is UMNO supporters with their "senaman punggung" in front of the Ambiga's house. This is done by those who are said to have served in the armed forces in the past.

Is this the mentality of our former military?. Strange! IGP said this is not a wrongful practice. UMNO will certainly give its blessing and fun for sure with this act of their supporters. For me UMNO completely no longer fit ruled Malaysia because their leaders clearly can not differentiate between good and bad.

How to expect for better Malaysia if we keep this kind of leadership to manage this country. Bastard leaders!!!!!!

Anonymous,  15 May 2012 at 20:12  

Hello Johor Mali,

Why you only think about Tengku Aziz. Is that so important to rakyat? What about millions RM duit rakyat missing every year? What about Scorpeon case and hundred millions missing just for commission?.

Did DAP terminate Tengku Aziz membership. No right?

Your mind too rusty and need to polish ..I think so!

Anonymous,  15 May 2012 at 21:17  

bruno, if I may ask, do you know who are the underwriters in the event the shares are undersubscribed. If there is one, I hope it's not another GLC like Tabung Haji or EPF. Either way we lose.

On the subject of pricing post IPO, if the indication as you alluded to, did not materialise with a higher price than RM4.60, we can expect prices of IOI, KLK and other established counters to go up as agro-based investors will opt for safer heaven in their porfolios.

bruno,  16 May 2012 at 02:58  

Anon 15 May 2012 21:17

I think it should be JPM Chase and Morgan Stanley looking for institutional investors in the US and Europe.But I am not sure whether they are the main underwriters or supporting underwriters.But a pretty good guess,since Umno is involved will be a GLC with brokerage business.This GLC will mainly look for investors in Asia.

Yesterday,Jimmy Rogers back from Singapore was on CNBC and said JPM Chase brokerage division is in real deep shit.He was commenting about the recent 2-3 billion hit JPM Chase took on their derivatives bet by their CIO division in London.

For the IPO to be successful the shares set aside for subscribtion has to be over subscribed by at least 10-15% to lure big market players and speculators interest.
Otherwise the volume will not be there and the share prices will eventually fade and drift lower by itself.

bruno,  16 May 2012 at 03:25  

Anon 15 May 2012 20:12

My best guess is that if the IPO is a flop it will pull down all the plantation counters.If it is a success it will lift the other plantation counters as well.

Anonymous,  16 May 2012 at 09:58  

Salam Tuan,

Puak totok UMNO Baru ni Buta Sejarah!

RTM! TV3Stooges! Atro! "Jeng..jeng.jeng.. demonstrasi bukan budaya kita!...Occupy Wall Street..Tahrir Square!" Stesen TV Malaysia Pakar Edit Buta Sebelah Mata!! UMNO hentam habis-habisan Bersih 3.0, seolah-olah bandar KL nak kiamat, huru-hara sana sini. Kereta terbakar sana-sini. Bergelimpangan mayat sana sini. Ini semua auta UMNO.

UMNO : Kalau ada demonstrasi di USA, UK, Australia, Canada, Paris. Jangan seronok-seronok pergi sana. Huru-hara nanti jadinya. Lebih baik kamu menteri-menteri UMNO pergi ke Korea Utara. Sana lagi best, tak ada demonstrasi jalanan. Semua RAKYAT menangis depan gambar Kim Jong Il.

Rujuk apa sejarah UMNO pernah demo berpuluh tahun dahulu?

Anonymous,  16 May 2012 at 13:57  

Does the commander of the armed forces and all military proud with senaman punggong demonstrated by Malay Army Veterans Association infront Ambiga's house?. I think Zahid Hamidi shall be proud of that. If not .. why this people keep quiet and do nothing?.

But for me if the military well supported this dirty excercise and do not bother about it, I assume all of them have low morale and not worthy of respect of Malaysia people.

Better the presiden of this Persatuan Veteran Tentera Melayu go and tahan his buttock to babi hutan jantan! What happened to your dignity man?

Anonymous,  16 May 2012 at 17:37  

Most settlers do not have strong financial skills and good with money....their land is their future.

Kutu Kampung,  16 May 2012 at 21:52  

Cynicism aside, Daddy-0 fattened the lembu, and sonny boy went for the parang!

I wouldn't really like to think so but that's what happened when the Director called - Lights, Camera, Action !!!

I would have thought an evening in Paris would be more romantic and dashing than being damned at the Dome! ;))

Ho boh?!

Anonymous,  16 May 2012 at 22:29  


this cutesy idiot 15 May 2012 20:10 sent by the goons is back at loading offensive and illegal stuffs on your blog again. i think you need to delete them.

Anonymous,  17 May 2012 at 21:12  

You said Felda listing is the game the crooks play. But the crooks will always think the are the hero, the saviour, the champion, the great thinker, the super strategies, and the good guy

Same as the man who walk on water that always belittle the public with his extremely outragous statements.

bruno,  17 May 2012 at 21:16  

Dato,speaking of PKR leaders acting like grumbling and nagging grannies and always shooting themselves in the foot.When it looks like the Tunku Aziz saga was beginning to look like a free for all out comes LKS.

All it needs from the man was a simple few words.Let us part ways but like gentlemen.If the wise words of the man do not stop the spat,nothing will.Afterall,all men likes to look like 'jantan'.I think Kit Siang nip the ass at the butt.

Then speaking of Najib having wooed over the Indian community with his dangling carrots,some Umno napoleans with a double barreled shotgun shot him at both feet point blank.

This bumbling warlord sent his babbons barbecueing hamburgers outside Ambiga's home.Their targeting Ambiga because of Bersih will definitely backfired.Bersih is not about Ambiga,but for the people wanting a cleaner and fairer elections.Ambiga happens to be the co-chairman,that is all.

And the cooking of beef hamburgers to intimidate Ambiga and future leaders of protestors,sure will infuriate many Indians of the Hindu faith and Malaysians alike.Maybe now,after Cowhead 2 the Indians who didn't show up for Bersih 3.0 will wished they did.

Quiet Despair,  18 May 2012 at 00:21  

Hi Bro Sak

Missed you. Why so quiet on the Tunku Aziz issue? Your silence is deafening, bro.
Are you so taken aback or you regard it as insignificant?
Would like your take on LGE's purported buying of Tunku Aziz for RM50,000 to cajole him to stay on and head the small Penang institute?
Does it constitute corruption? The Parti Cina Penang has already lodged a police report on this.
Awaiting with anticipation. Thank you.

MAHApenipu,  18 May 2012 at 03:17  

>Johor Mali,

Tunku Aziz is only an individual la.Only UMNO is kecoh, not PR la.The pirates of Putrajaya will kaput-ed Msia la. Always see the faraway germ but not the elephant in front of you.This article is about FELDA listing, not Tunku Aziz la..

flyer168 18 May 2012 at 12:38  

"FGVH Listing- the game the crooks play"


Yes indeed and very well said.

Just to share this...

Top Felda officer 'cold-storaged' at PM's Dept – YouTube -

Mar 16, 2012 by malaysiakini
The Koperasi Permodalan Felda (KPF) secretary has been exiled to the Prime Minister's Department for allegedly opposing the appointment of Isa Samad as the co-operative chairperson, according a PAS parliamentarian.

Full Story:

65% Felda managers say listing plan will fail' -

A consultant firm appointed by Felda has discovered that 65 percent in the land development authority's management were in the opinion that the controversial listing of Felda Global Venture Holding would fail.

According to Boston Consulting Group (BCG), some 55 percent are of the view that Felda was not ready for the listing, while only 20 percent of top management supported the plan.

Wong Chen: Felda share investors will be stuck for at least 10 years -

Share investors will be stuck for 10 years

What the shocking tree profile means is FGVH will be stuck for at least 10 years before the majority of its plants become prime. So if you buy the shares today, you will have to wait at least 10 years before the company normalizes its planting profile and start to perform like a good plantation company should.

So, if FGVH is not ready to list because of its weak fundamentals, then why the rush to list?

FELDA and the government need to answer why they are so gung ho on the listing. Could the listing be by driven by politics by an over politicized board of directors?

Is the prime motivation to list aimed at enriching bankers and advisors, the board of directors of FELDA and also to provide a windfall payout to settlers to buy political support?

You be the judge.


OneMalaysian,  18 May 2012 at 17:52  

You have made a good attempt to explain the Felda IPO in a way that the MSM does not explain. From an investment angle, with only 49% of Felda Holdings, the crown jewel, FGV cannot be attractive. But the original intention was to con the settlers to throw in their 49% as well. Credit to ANAK for staunchly defying the evil attempts to fool the unknowing settlers.

The settlers had gotten away with the RM15,000 bait, but escaped being hooked to a bad deal. Do they care where this money comes from? Why should they! But for the rest of Malaysia we must. There is no such thing as free money. What is given away to some is a resource denied to others. This shows how irresponsible this government really is - engaging in unadulterated and blatant vote buying. The Felda vote bank is akin to the Sarawak and Sabah fixed deposits. It must be secured at all costs. So what if that cost Rm15,000 per family. But if money buys an election, and we Malaysians allow that to happen, we can only get a corrupt and self serving government.

You cannot stop this bribery, but you must continue explaining the central issues so that all Malaysians understand this complicated issue better - a con job gone bad, a massive election bribery (is this what true democracy is?) and irresponsible behavior at the very highest levels of government, involving the PM no less.

Anonymous,  24 May 2012 at 15:25  

I got the chance to follow my friend to Mat Isa's house at Lavender Height in Seremban the night before MITI 's dateline...he was not an umno but was invited by his umno's friend to submit shares application from his 2 small companies to get 200k shares, his friend applied for 5million shares, that they will get below the offering price. I wonder, my Felda settler father will be forced to get how much shares, small portion indeed and these N9 Mat Isa umno gangs openly tell that night, sell the share on the same day, get the profit...can you see the sam????

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