Felda settlers, who were made to take loans to buy Felda Global Venture (FGV) shares, are now suffering a loss, according to PAS-led pressure group Anak.
"According to bankers we have consulted, RM4.70 is the threshold where settlers will begin to (lose)," Anak chairperson Mazlan Aliman claimed at a press conference at the PAS headquarters this morning.
Elaborating, Anak economic advisor Rosli Yaakob (left)said this is because the dividend at this price would be insufficient to cover the interest on the loan.
"The interest rate for the loan obtained to purchase the shares at RM4.45 is now more ‘expensive’ than the dividend," he said.
At the time of writing, FGV's share price was RM4.70. The company's initial public offering institutional price was RM4.55, while its retail price was RM4.45.
Rosli explained that any gain would be insufficient to cover miscellaneous processing fees for the buying and selling of the shares, especially since the settlers only hold 800 units each.
He said Felda had rushed the public listing in a unhealthy market, noting that market analysts have noted that 52 percent of Felda's oil palm plantations comprise old trees.
"During its listing Felda had promised that FGV would have strategic partners, but we have not heard anything about them since. Most of the shareholders are government institutions or foreign fund management bodies," he said.
Police summon Mazlan
Mazlan also said he has been summoned to the Sentul district police headquarters this afternoon.
"According to bankers we have consulted, RM4.70 is the threshold where settlers will begin to (lose)," Anak chairperson Mazlan Aliman claimed at a press conference at the PAS headquarters this morning.
Elaborating, Anak economic advisor Rosli Yaakob (left)said this is because the dividend at this price would be insufficient to cover the interest on the loan."The interest rate for the loan obtained to purchase the shares at RM4.45 is now more ‘expensive’ than the dividend," he said.
At the time of writing, FGV's share price was RM4.70. The company's initial public offering institutional price was RM4.55, while its retail price was RM4.45.
Rosli explained that any gain would be insufficient to cover miscellaneous processing fees for the buying and selling of the shares, especially since the settlers only hold 800 units each.
He said Felda had rushed the public listing in a unhealthy market, noting that market analysts have noted that 52 percent of Felda's oil palm plantations comprise old trees.
"During its listing Felda had promised that FGV would have strategic partners, but we have not heard anything about them since. Most of the shareholders are government institutions or foreign fund management bodies," he said.
Police summon Mazlan
Mazlan also said he has been summoned to the Sentul district police headquarters this afternoon.
He is required to give a statement on a protest he had led to the national palace on July 14, against the FGV listing exercise.
Mazlan (centre in photo) said he had been receiving calls from the police since last week, but had refused to comply with the request.
"I said that the rally was peaceful and that nothing illegal had happened. So why do they want to call me up?
"But yesterday I received a notice which was sent to the PAS headquarters. (It stated) that, if I do not present myself at the police headquarters, they will issue an arrest warrant against me. (So I will go.)”
Mazlan (centre in photo) said he had been receiving calls from the police since last week, but had refused to comply with the request."I said that the rally was peaceful and that nothing illegal had happened. So why do they want to call me up?
"But yesterday I received a notice which was sent to the PAS headquarters. (It stated) that, if I do not present myself at the police headquarters, they will issue an arrest warrant against me. (So I will go.)”
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