Donplaypuks : Q: How could PM Najib become a millionaire? A: Simple! Give him a billion ringgit!

steadyaku47 comment : A good read from Donplaypuks.

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 of Felda Global Ventures Holdings (FGVH) as the 3rd largest palm oil company in the world by acreage, amidst much controversy. 
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 big hit 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 still has 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!

Posted by Donplaypuks® at 12:56 p.m.