Malaysia’s pension fund Employees Provident Fund (EPF) has divested its entire holding in Felda Global Ventures Holdings Bhd (FGV), one of the world’s largest palm plantation firms that has seen its stock prices tumbling in the past few years.
“In line with best practices, we have been closely monitoring the equity performance of FGV over the years and have gradually sold down our shareholding. As of today, the EPF no longer holds any share in FGV,” EPF said in a statement on Thursday.
FGV, which listed on the Bursa Malaysia in 2012, has seen its share price decline rapidly in the past years. Following a drop in the downstream prices, the share is trading at MYR1.54 at the time of writing.
That is a stark loss in value for a stock that opened at MYR5.39 at the time of listing which was also considered as one of the biggest global initial public offerings in 2012.
EPF was among the larger shareholders in the company holding 3.85 per cent.
With regard to a MYR6.5 billion loan taken by Felda Holdings, EPF said, it was not in default and that Felda continues to service the loan in accordance to the agreed terms and conditions.
Despite being the third largest palm oil producer in the world, FGV has consistently been in losses. The firm even predicted a loss for this year in its last quarterly reports.