Felda-Rajawali dispute under arbitration in Singapore, says minister

PT Rajawali Capital International is challenging Felda’s decision to sell back its 37% stake in Eagle High.

KUALA LUMPUR: The dispute between Felda and Indonesia’s PT Rajawali Capital International over the authority’s decision to sell back its shares in PT Eagle High Plantations TPK (Eagle High) is at the arbitration stage at the Singapore International Arbitration Centre.

Minister in the Prime Minister’s Department (Economy) Mustapa Mohamed said this in a written reply to Tony Pua (PH-Damansara) in the Dewan Rakyat today.

Mustapa, however, did not elaborate on the issue, as the case is pending proceedings.

Pua had asked about the main terms and conditions in Felda’s acquisition of shares in Eagle High worth US$505 million (about RM2.2 billion).

He also wanted to know about Felda’s move to reclaim its investment through the put option that was set out in the agreement.

Pua noted that Felda filed a notice in April last year to sell back its 37% stake in Eagle High to Rajawali, which challenged the exercise.