THIS Wednesday, May 11, will be the fifth anniversary of the completion of the Federal Land Development Authority’s (FELDA) acquisition of a 37% stake in PT Eagle High Plantations Tbk from Indonesia-based Rajawali Corp. FELDA’s acquisition came under fire at the time as it was done at a 95.86% premium to the market value of Eagle High’s shares. Eagle High, meanwhile, has suffered losses in the past seven financial years and the first quarter of FY2022 despite stronger CPO prices. According to Eagle High’s annual report for FY2021, its operational activities are in Sumatra, Kalimantan and Papua New Guinea. Considering the situation Eagle High is in, it is clear that FELDA will likely seek to reverse the acquisition.
