FGV Sues Ex-Chairman Isa Samad, 13 Others for RM514M Damages over Bad APL Acquisition

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FGV Holdings Bhd has commenced legal proceedings against its former group president and CEO Datuk Mohd Emir Mavani Abdullah and 13 others for damages totalling RM514 million as well as other damages in relation to the acquisition of Asian Plantation Ltd (APL).

Besides Emir, the others being sued in the Kuala Lumpur High Court include former FGV chairman Tan Sri Mohd Isa Abdul Samad, former business development of downstream cluster vice-president Farisan Mokhtar, former chief financial officer Ahmad Tifli Mohd Talha and former downstream cluster senior general manager Rasydan Alias Mohamed.

(L-R) Emir Mavani Abdullah, Isa Samad, Ahmad Tifli Mohd Talha.

In 2014, FGV acquired London-listed APL for about RM1.1 billion, including its debts.

In a filing with Bursa Malaysia, the company said the suit concerns the company’s acquisition of 100% equity interest in APL via a voluntary conditional cash offer in 2014.

The company brought this action for loss suffered from their failure to discharge their respective fiduciary duty, duty of fidelity and/or duty to exercise reasonable care, skill and diligence.

The other defendants being sued are former non-executive directors in the company – Tan Sri Ismee Ismail, Tan Sri Wan Abdul Aziz Wan Abdullah, Tan Sri Sulaiman Mahbob, Datuk Omar Salim, Datuk Noor Ehsanuddin Mohd Harun Narrashid, Datuk Yahaya Abd Jabar, Datuk Faizoull Ahmad, Datuk Nozirah Bahari and Datuk Fazlur Rahman Ebrahim.

Besides the RM514 million in damages for loss from the acquisition APL, FGV said it is also seeking general damages; interest at the rate of 5% per annum on damages awarded (starting from the date of the filing of the suit until the date of full and final settlement); costs, interest at the rate of 5% per annum on the amount of costs awarded (starting from the date when the costs were awarded until the date of full and final settlement) and such other and further reliefs that the court deems fit and proper.

FGV added that it is now assessing the financial impact on the company arising from this litigation and would make a further announcement at a later date.

However, there is no impact on existing operations, it noted.

The company would be making the necessary announcements on further developments of the legal proceedings as and when there is a material update. – The Star