PETALING JAYA: FGV Holdings Bhd has restated that the Federal Land Development Authority (Felda) has yet to reach out regarding its land lease agreement (LLA).
In a statement, it said that the group is prepared to follow the procedures outlined in the agreement once it has received notice from the land authority regarding the matter and it will make the relevant announcement in the event of any material development.
Previously, FGV clarified that its land lease agreement with Felda signed on Nov 1, 2011 does not involve land cultivated by Felda settlers and palm oil mills.
It listed the land owned by the authority currently amounts to more than 850,000ha, of which the settlers owned a total of 450,632ha, while Felda-owned land that was leased to the group stood at 350,733ha.
FGV also listed that Felda’s shareholding in the group stood at 21.24% and Felda Asset Holdings Company Sdn Bhd’s shareholdings is 12.42%. Subsequently, a Felda representative was placed on FGV’s board of directors.
On the matter of the group’s payment to Felda, it reiterated that the amount payable stood at RM248 million based on the hectarage with an additional 15% of its profit from the lease lands annually.
From 2016, there was a decrease in the land lease fixed payment to the authority due to adjustments on the hectarage leased.
FGV explained that the decrease was due to land acquisition by Felda, surrender of land to Felda for the purpose of mining, encroachment to third party land, overlapping of mill land as well as the reconciliation process between land title and the Department of Survey and Mapping Malaysia.