PETALING JAYA: FGV Holdings Berhad (FGV) has liquidated two companies in its stable — Felda Engineering Services Sdn Bhd (Felda Engineering) and Felda Properties Sdn Bhd (Felda Properties).
This is part of its transformation efforts, FGV said in a statement.
FGV currently has about 100 companies, of which 93 are active and operational, though several are not profitable or well-managed.
The company stated that Felda Engineering and Felda Properties were incorporated in 1994 and 1995 respectively, mainly to support internal housing and construction projects for the Federal Land Development Authority (Felda).
Since FGV’s listing in 2012, Felda’s subsidiary, Felda Investment Corp (FIC), has undertaken much of the work previously undertaken by Felda Engineering and Felda Properties.
Additionally, FGV’s plantation sector already has in-house capacity to manage and maintain its own facilities.
“FGV was in discussions with Felda for almost a year, from February 2018, and also with the settlers’ cooperative, Koperasi Permodalan Felda Malaysia Berhad (KPF), from November 2018, on the possible takeover of Felda Engineering and Felda Properties,” it said in the statement.
However, neither Felda nor KPF agreed to acquire the two companies.
Pursuant to the planned liquidation of the two companies, FGV has offered severance packages to a total of 135 employees, in accordance with Malaysia’s labour laws and regulations.
Each affected employee will receive between 10 and 30 months of his or her current monthly salary, depending on their years of service to the group.
All the 135 employees will also receive full medical insurance coverage until Dec 31, 2019.
FGV is offering outplacement assistance to all affected employees to help facilitate a smooth transition.
Since the management made the decision to exit the two businesses a year ago, a total of 23 employees from Felda Engineering and Felda Properties have been absorbed into other parts of the group.
FGV said it will continue to seek every opportunity to reskill or redeploy its displaced manpower, wherever possible.