Exposure to FGV negligible, says PNB

KUALA LUMPUR: Permodalan Nasional Bhd (PNB) chairman Tan Sri Abdul Wahid Omar on Friday played down its exposure to embattled Felda Global Ventures Holdings Bhd (FGV), calling it negligible when compared with its overall fund size.

According to the group’s 2016 annual report PNB’s exposure is through Amanah Saham Bumiputera, which holds a 1.47% stake in FGV.

Abdul Wahid, who was speaking on the sidelines of the group’s breaking of fast gathering with the media, declined to reveal the cost of investment in FGV and was non-committal on plans for its stake in the group.

FGV shares closed one sen higher at RM1.66 on Friday, bringing the value of PNB’s stake in FGV to about RM105 million.

Kumpulan Wang Persaraan holds a 7.349% stake in FGV, and Lembaga Tabung Haji has a 7.796% interest. The Employees Provident Fund ceased to be a shareholder in FGV in 2015.

Abdul Wahid explained that the fund manager, which manages some RM266 billion, has about 45% of the RM185 billion invested in equities in core listed companies, in which it owns at least a 10% stake or RM1 billion in terms of value.

The companies include the likes of MMC Corp Bhd, Sime Darby Bhd, Malaysia Airports Holdings Bhd, Axiata Group Bhd, Telekom Malaysia Bhd.

Meanwhile, Abdul Wahid said PNB continues to work with the Penang Fatwa Committee to secure a “harus” or permissible ruling for investments in its funds. In May, the Selangor State Mufti Department ruled that the investment is “harus”, more than nine years after the National Fatwa Council did so.

PNB has managed to increase the market capitalisation of its strategic listed companies by about RM25 billion in the first six months of its six-year strategic plan.