Felda Global Ventures Holdings Berhad (FGV), the world’s largest palm oil producer, through FIC Properties Sdn Bhd, agreed to become a strategic partner of Rajawali Corpora (controlled by tycoon Peter Sondakh) in PT Eagle High Plantation Tbk (BWPT) years ago by acquiring shares of the Company. The deal was sealed in 2017. In the middle of the process, Felda became a subject of corruption probes related to the 1MDB scandal. In mid-2019 Felda’s new Director-General Datuk Dr. Othman Omar claimed that Felda was cheated into entering a “one-sided” deal for the sale and purchase of BWPT’s shares. Since then, the “put option agreement” between the parties became a subject of discussions. The agreement makes it possible for Felda to claim all the money it paid plus 6 percent of annual interest should BWPT fail to fulfill its obligations. Rajawali Corpora declared its intention to resolve the dispute through arbitration. It is not a surprise that BWPT can only meet one of its duties. The arbitration stage, unfortunately, takes place in secret.
To subscribe please click here