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14/08/2015

PM NAJIB CHALKS UP RM7.9 BILLION LOSSES FOR GLC/STAT BODIES HOLDING FGVH SHARES. SYABAS!

by warren buffteted senseless, donplaypuks® intrepid correspondent for billionaire to millionaire affairs


GLC/STATUTORY BODY FGV SHARE #1 LOSSES
 

    %  No. of Shares      @4.55   @1.56 BOOK LOSS



        RM       RM          RM
Felda Land 20.00%       729,629,800      3,319,815,590   1,138,222,488   2,181,593,102
Felda Asset 13.66%       498,321,192      2,267,361,424       777,381,060   1,489,980,364
Tabung Haji 7.78%       283,710,100      1,290,880,955       442,587,756       848,293,199
Felda Co-operative 5.80%       211,758,908          963,503,031       330,343,896       633,159,135
KWP 5.63%       205,763,500          936,223,925       320,991,060       615,232,865
EPF 5.28%       192,587,200          876,271,760       300,436,032       575,835,728
Pahang State Govt 5.00%       182,407,575          829,954,466       284,555,817       545,398,649
Amanah Saham Bumiputra 4.13%         89,010,989          405,000,000       138,857,143       266,142,857
Sabah State 1.81%         65,934,066          300,000,000       102,857,143       197,142,857
PNB 1.58%         57,803,700          263,006,835         90,173,772       172,833,063
Amanah Saham 2020 1.22%         44,601,400          202,936,370         69,578,184       133,358,186
LTAT 0.97%         35,535,900          161,688,345         55,436,004       106,252,341
Yayasan Islam Terengganu 0.45%         16,455,100            74,870,705         25,669,956         49,200,749
Socso 0.33%         12,200,000            55,510,000         19,032,000         36,478,000
Lembaga Air Perak 0.27%         10,000,000            45,500,000         15,600,000         29,900,000


73.91%   2,635,719,430    11,992,523,407   4,111,722,311   7,880,801,096


# shareholdings based on FGVH 2014 Annual Report. 



In 2012, PM Najib Tun Razak was the prime mover of the listing, amidst much controversy, of Felda Global Ventures Holdings (FGVH) as the 3rd largest palm oil company in the world by acreage. 

In 2009, he was also the prime mover of 1MDB which is now embroiled in a $46 billion debt debacle and financial fiasco. 

Nevertheless, FGVH successfully raised US$3.1 billion or RM 9.93 billion @ RM4.55 per share, via its IPO. In 2012, it was the second largest listing in the world.

Three years into its listing, FGVH's share price has plummeted from a historic high of RM5.39 to a historic low of RM1.53, a loss of 72% in value!! Today, it closed at RM1.56.

This has left a bloody trail of losses of about $8 billion by Malaysian GLCs and Statutory Bodies, as shown above, with the loss at 66% of IPO price (4.55-1.56 = 2.99/4.55).

FGVH's profit after tax tumbled by 51% from RM1.1 billion in 2013, to RM539 million in 2014.

In recent months, FGVH shares took another battering when the company announced its intention to acquire 37% of PT Eagle High Plantation, Indonesia, for RM2.55 billion. The price tag was more than twice the current listed share price of Eagle High. 

A few billion ringgit was wiped off FGVH's share value within a few days.

The high brows at FGVH mumbled something about pricing Eagle High at (the higher) "enterprise value" while largely ignoring its depressed market price. Not surprisingly, there was almost universal condemnation of the acquisition price by investment analysts from here to China. CLICK HERE and HERE for the Eagle High story.

There is also a personal connection between PM Najib and Eagle High owner, Peter Sondakh. CLICK HERE for that connection. There was much suspicion, that once again, possibly, someone was inflating share prices with no good in mind, as in the case of 1MDB's $18 billion acquisition of IPPs.

Anywhere else, the Chairman and CEO would have long ago been shown the exit door for the huge loss to shareholders. In Malaysia, they are still being rewarded with salary increases and bonus! CLICK HERE for some information on FGVH's management.

In the wake of 1MDB's $46 billion fiasco, it looks like PM Najib, dubbed Pink Lips by some bloggers, has the kiss of death and the touch of plague. Whatever he caresses, turns from gold to dust and dross! 

PM Najib has still not learnt that it is not the business of government to dabble in business, especially big business. More so, if you have lived a very sheltered life, and know as much about real business as you would about quantum physics or how to perform brain surgery.  

As for PM Najib's business acumen, who in his right state of mind would buy a 2nd hand car from this snake-oil salesman and serial liar?

As the saying goes in Malaysia:

Q: How could PM Najib become a millionaire? 

A: Simple. Give him a billion ringgit!


Donplaypuks® with IPO's and GLC/Stat Bodies, man!

7 comments:

atomique2shy said...

This sort of thing (markets, financial stuff) isn't really my cup of tea so I had to click on the links you provided to read up on the background and context of the matter.
That Star link you provided .... holy hell, could they have used a LESS flattering photo of the FGV CFO? Poor guy looks barely sentient in that particular pic!
Also, I learnt that the FGV CEO dropped his "Dr." title when there was an uproar about the credibility of the "university" where he got his Ph.D. Ugh. What is it with Malaysia and fake titles and credentials!?

Sorry for the diversion, DPP!

Donplaypuks® said...

OpenID atomique2shy

Rumour hath it that a certain Birkin Bag crazy housewife forced through the CEO appointment. Then the guy waas accused of more or less of buying an online PhD.

Note too that the Chairman was dropped from UMNO for money-politics and as NS MB!! Check out:

http://www.malaysiandigest.com/archived/index.php/25-features/commentary/25107-isa-samads-political-comeback-when-corruption-pays.html

There is much disquiet over FGVH multi-million ringit purchase of hotels in London, and the Chairman's son's name has been bandied about!

The point is also that whoever forecast FGVH financials must go to jail. How can earnings and IPO share price sink by 51% and 66%? What is KLSE and the SC doing about it?

Mr Bojangles said...

Haramjadahs, all.
Masquerading as hot-shot world-class corporate movers and shakers.
Strip them of their suits and ties and we'll see them for the sewer rats that they really are.

atomique2shy said...

Hey DPP!

I want your input and opinion on something I've been thinking about. Feel free to jump in and criticise where you think I've gone wrong. Bear in mind economics isn't my forte, what I've learned is just from reading stuff here and there over the years.

My question is, have you ever wondered why, in more developed countries, the issue of price of essential goods like bread, cars, kangkung etc is never an election issue? Let me elaborate: say in Germany for example, during elections they don't complain about the price of cooking oil going up or the price of sauerkrauts etc. Even in Singapore they don't specifically whinge about say, the price of Gardenia bread hitting the poor- they usually distill it to a subset of "bread and butter" issues and instead complain about things like high hawker stall rentals.

My answer to this is that, in these countries, the government doesn't involve itself (not as much as in Malaysia, I mean) in the realm of business. There are hardly any direct subsidies in the form that we have in Malaysia and so the people cannot complain to the government about price of sugar and ikan bawal and such. Conversely there isn't such a thing as a list of controlled prices for broccoli and cili padi etc. The market is entirely open, competitive and transparent (I know there are exceptions everywhere in various industries though) and this makes it good for consumers in general.

In Malaysia, it seems like we have a semi command economy similar to that in the Soviet Union or, maybe more akin to the "Permit raj" style of India where the government directs public resources toward a notional common benefit. This seems to have distorted things where you get cronies and rent seekers placing themselves in important junctions of the economy, enriching themselves but making things really bad (expensive, inefficient) for the people.

For example, say I am a crony who gets a sweet concession from the government for uhhhh, an exclusive monopoly in durians. Everybody who wants one has to go through me. Since I owe my sweet spot in the economy to that political "someone" I will have to charge consumers over the odds to get the $$$ to repay my patron for the favour. And yes, I'll enrich myself too. Win-win, yes? Except for the poor 30 million Malaysians who have to overpay for my goods.

Is this about right?

I am reminded of Clausewitz's axiom on war, but paraphrased for economics - "everything is very simple in war, but the simplest thing is difficult". Everything in an open free market should be simple, but in a crony capitalist rentier economy like ours, everything is ass backwards and inefficient as all hell. Seems like there is too much friction (to borrow Clausewitz's terms) in the economy due to the heavy hand of government direction. It ain't as bad as the India's permit raj and the resulting "Hindu rate of growth" but it's definitely holding us back.

What do you think? Sorry if what I've just rambled on about seems blindingly obvious to you, but like I said, economics isn't my specialty.

Donplaypuks® said...

atomique2shy

I'm not even an amateur economist. But, I guess when real disposable incomes are high as in the developed countries, and cars are not over-taxed 150%, and bread, rice etc. not monopolised by rentiers, then they are happy to move on to tackling real issues.

Here, real disposable incomes are relatively low, and there are so many govt licensed middlemen fleecing the Rakyat. Rice and sugar are more expensive here than in S'pore. 225gm of butter costs>RM8 and milk about RM5-7. What's the price of a litre of milk down under? You'll cry! Ourtaxes may be lowm but we pay a heck of a fortune for education, medical and cars.

Our PM and "trained economist" with a fake degree has mismamanaged policies and the economy to the extent we are close to becoming a afiled state!



Anonymous said...

Can someone report the Abominable Yeti's "misdemeanours" to the regulating body of global banking and finance and the World Bank? If this party cannot be brought to court, at least the person's international standing and credibility can be questioned. Malaysia is now the laughing stock of everyone at the way shady financial transactions are covered up by the authorities.

Woon Lai Suan said...

Crooks will cover crooks as long as there is "something" for them in doing so ..... and we have plenty of them in our present setup!!!
Malaysia Boleh!!!