FGV shares rise up to 6 per cent following former chairman’s arrest

FGV shares rise up to 6 per cent following former chairman’s arrest

KUALA LUMPUR: Felda Global Ventures Holdings Bhd (FGV) rose as much as 10 sen or six per cent after the Malaysian Anti-Corruption Commission (MACC) arrested its former chairman Tan Sri Isa Samad yesterday.

Isa, who was also chairman of FGV major shareholder Federal Land Development Authority (Felda), was arrested to facilitate investigations on Felda Investment Corp Sdn Bhd’s (FIC) hotel acquisitions in London and Kuching.

FGV shares rose to a high of RM1.67 before slightly paring gains at RM1.66 or 5.73 per cent at the end of morning session.

The counter saw 15.3 million shares traded, putting it among Bursa Malaysia’s top 15 active stocks during the session.

Isa was nabbed when he presented himself at MACC headquarters at 2.40pm yesterday to have his statement recorded.

He has been remanded for five days by the Putrajaya magistrate’s court today.

MACC is currently investigating FIC’s purchase of a property in Kensington, London between 2013 and 2015 for a total of £60 million (RM330 million) when actual value of the property at the time of purchase was said to be RM110 million.

The graftbuster is also investigating FIC’s 2014 acquisition of a Kuching hotel, comprising 213 guest rooms and apartment suites.

It is believed that FIC paid between RM40 million and RM50 million higher than the actual market value of the hotel.

FIC is the investment arm of Felda.