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Sakmongkol ak 47

Tuesday 27 December 2016

Buying Eagle High Plantations

FELDA has got this habit of talking big. It says the purchase of EHP at RM2.3 billion will not affect its commitment to look out for the welfare of settlers. 
Maybe so, but how will they do that? By just , as the Malays say- just do the teeth and tongue thing?  Gigi dengan lidah means just talk for the sake of winning the current argument. 
Up to now, we have not received or seen the year ending 2015 accounts of FELDA. And 2016 is almost over. It’s late by 1 year. It made losses as at end 2013 and 2014. So how will FELDA back up its big talk?
I am suggesting a more sinister plot which involves of course the MO1. Maybe it was he who set up eagle high together with friend Peter Sondakh. That was when he met Peter in 2014.
The initial seed money may have come from the loan from KWAP- RM4 billion where already RM400 million was used. We know this amount has been used. It was answered in parliament. 
Up to today, the government cannot explain how the loan of RM4 billion was applied and where the fund was appointed to.
It’s a nice story to build up. We actually don’t know.
So how will FELDA finance the purchase? It has no money. The income from its linkage with FGV is not coming because FGV is making losses. I hope they still get paid rental of RM250 million a year. If they haven’t spent the rental income, by now, they would have RM1 billion cash. But the year ending 2013 and 2014, did not suggest they have that amount of money.
So either, the balance from the RM4 billion will now be directed to acquire the 37% in EHP or FELDA will issue debt instruments. The later business model- described as fucked up by Johari  Ghani, Finance Minister # 2, is a favoured method by the PM. Felda will need to borrow more than RM2.3 billion. The government will agree to the issuance of bonds, giving them the government grantee needed.
Why do they need to borrow more than RM2.3 billion? Because it’s buying into a company with only 125,000 hectares of land planted. It still has to develop the balance 195,000 hectares. The cost of planting  a greenfield till production is around RM15,000 per hectare. Assuming FELDA’ share is RM5500 per hectare, Felda will have to put up RM 1 billion at the very least.
This is a bloody expensive piece of real estate to buy. Real estate, because FELDA is using a SPV- FIC Properties Sdn Bhd to buy RHP. 
But the PM must have it. If he does that, he cannot dismiss the suspicions that this is a purchase at an inflated price by at least 30%. The inflated portion will come in handy to buy votes in the GE14 said to take place in October or November 2017.  


Anonymous,  27 December 2016 at 22:47  

Ha ha ha Dato' you said it..the last sentence.

Dulu play up the Busra. This ended with the SC. Then the the foreign worker recruiting, then the 6P. Then 1mdb,SRC maneuver. Now this ! Memang licik tapi kita bukan bodoh.

Apa perlu nya berbilion-bilion nak finance kempen PRU ? Kalau kota kan "Rakyat didahulukan Pencapaian diutama kan" tak payah nak belanja berjuta-juta pun tetap boleh menang.
Cash is King lagi la

Ikut macam bapak la..budi is king

Dr.Mahathir kita pun tahu bukan malaikat tapi tak ada kerosakan ekonomi dan integrity kerajaan Malaysia walau dari sudut mana pun kita tengok.

Ini pm bila dia dijatuhkan patut ditambat laki bini di pokok sena dan dikerengga kan.

Gue,  28 December 2016 at 15:18  

En Skmgkl,
It is really sick that Felda is buying Eagle High shares at a much higher price than what is quoted at the stock market. And that for a 37% minority stake !!
It then goes round and round to justify its move :"The acquisition will also help Felda and its associate companies make further inroads into the lucrative and expanding domestic market in Indonesia, it said."(Straits Times, 23 Dec).
Please, Indonesia is already the world no. 1 producer of palm oil.
"Further inroads"....? Lucrative...? Really... ? Then why does pension fund EPF dump all of its holdings of Felda Global shares contributing to a price dive of 5.6% Friday.

The overpricing of the shares can perhaps be seen in the stock market reaction when Eagle High share price "jumped as much as 8.8 per cent to the highest in almost eight months (also) on Friday."

Sorry 28 December 2016 at 21:15  

I suspect this will go through in no time as "one has to borrow from Paul to pay Peter". Any default payment to 'Paul' will have a big repercussions.

Anonymous,  4 January 2017 at 13:28  

Sorry, already too much. Those responsible must be accountable.... They must be tried and deserve to go to jail......

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