19/06/2017 (The Edge Markets MY) - KUALA LUMPUR (June 19): Shares of Felda Global Ventures Holdings Bhd (FGV) were up two sen at mid-morning today, following news reports that there could be leadership changes in the company, which may also involve its chairman.
At 10.23am, the troubled palm oil giant's share price was up 1.14% at RM1.78 with 6.04 million shares traded, after gaining as much as five sen to RM1.81 earlier. The counter opened two sen higher than its Friday's close.
Local news portals reported yesterday quoting Federal Land Development Authority (Felda) chairman Tan Sri Shahrir Samad as saying there should be leadership changes in FGV.
Shahrir reportedly did not deny when asked if the changes will include the current FGV chairman Tan Sri Isa Samad, who is in the spotlight for spearheading the suspension of FGV chief executive officer (CEO) Datuk Zakaria Arshad.
"Just wait for an important announcement from the special shareholder on this matter," he was quoted as telling the media after presenting aid and breaking fast with residents at Pangsapuri Desa Melayu in Johor Bahru yesterday.
The special shareholder would mean Felda — a Malaysian government agency that is the single biggest shareholder in FGV with just over 33% stake in the company.
The latest statement echoed calls for Isa to quit by several fronts, amid poor public perception of the company following the board of directors' decision to suspend four of its officials from duty in a surprise move earlier this month.
The four suspended included FGV's CEO Zakaria, its chief financial officer Ahmad Tifli Mohd Talha, and two senior management officials in two of FGV's subsidiaries, on grounds of unauthorised credit extension by an FGV subsidiary Delima Oil Products Sdn Bhd to a customer, Safitex Trading LLC.
Just last week, Shahrir had been called upon by an independent group of second-generation Felda settlers to replace Isa as FGV chairman.
"There should be one chairman who is in both Felda and FGV," Hamaruddin Abdul Aziz, a representative of the group, said during a press conference last Wednesday.
Meanwhile, today is the last day for Zakaria and Ahmad Tifli to reply to the show-cause letter issued by the FGV board of directors last Tuesday. Failure to do so will cost the duo their position in the company.
Year to date, shares of FGV has gained 15.48%. Its current market capitalisation stood at RM6.42 billion.