FGV to complete forensic investigations by year-end

FGV chairman, Datuk Wira Azhar Abdul Hamid said FGV would be able to work with DCE to grow beyond China and to support its plans to accelerate the process of delivering physical palm oil to buyers.

KUALA LUMPUR: FGV Holdings Bhd, which is currently conducting a series of forensic investigations involving six transactions and/or investment decisions, expects to wrap up the investigation by year-end. 

Chairman and interim CEO Datuk Wira Azhar Abdul Hamid said the investigation was expected to be completed by year-end and there could be another one or two legal action to be initiated out. 

Out of the six transactions, four investigations have been completed involving acquisitions in Asia Plantations Ltd (APL), investments in FGV Cambridge Nanosystems Ltd, and acquisitions of Troika condominiums near the Petronas Twin Towers.

Azhar said the group booked its largest impairments totalling RM788mil in the third quarter, much of it was from the APL.

FGV posted net losses of RM849.25mil in the third quarter ended Sept 30, 2018,due to impairments totalling RM788mil. The net losses were in contrast with the net profit of RM41.52mil a year ago.

FGV recorded a revenue of RM3.19bil compared to RM4.14bil a year ago. 

To recap, in 2014, FGV acquired APL for RM567.9mil via a voluntary conditional cash offer at 2.20 pound sterling per share, a premium of 294.7% over APL’s net asset value per share as at Dec 31, 2013.

The plantation group has also commenced legal proceedings against its former group president and CEO Datuk Mohd Emir Mavani Abdullah and 13 others for damages totalling RM514mil as well as other damages in relation to the acquisition of APL.

Besides Emir, the others being sued in the Kuala Lumpur High Court include former FGV chairman Tan Sri Mohd Isa Abdul Samad, former business development of downstream cluster vice-president Farisan Mokhtar, former chief financial officer Ahmad Tifli Mohd Talha and former downstream cluster senior general manager Rasydan Alias Mohamed.