1. Does the deal affect the settlers well-being?

- The deal is a stand-alone investment with its own financing and will not impact FELDA's existing commitments and programs to improve the wellbeing of the settlers.

2. Is FELDA paying too high a premium over market price of EHP shares which some quarters claimed it is as high as 173%?

- Share price is not the accepted valuation method when it comes to plantation company. The share price may not reflect true value of EHP. The accepted valuation is enterprise value per hectare which is USD16, 000 ev/ha which is what FELDA paid for the 37 percent stake. This value compares favorably with recent transactions involving Indonesian palm oil company. 

3. What are recent comparative transactions involving Indonesian Plantation companies?

- For comparison KLK recent final offer of USD15, 500 ev/ha was rejected by MP Evans board. - MP Evans independent valuation put their value at USD17, 300 ev/ha. - MP Evans board has asked for valuation of USD24, 000 ev/ha for the company. At USD505.4 million FELDA is purchasing EHP stake at USD16000 ev/ha. - MP Evans planted land 31,400 ha. EHP planted area is 125,000 ha. So FELDA is purchasing access to land 4x the size of MP Evans at a lower ev/ha than MP Evans independent valuation. - Also the concluded purchase by Sime Darby of New Britain Palm Oil Ltd was at an ev/ha of USD27,000. 

4. Any other reasons why share price is not an accurate valuation?

- Share price also do not reflect true value because EHP shares are mainly controlled 70%+ by Rajawali Group. Plus it is listed in Jakarta stock exchange where it is not as liquid as KLSE or SGX.

5. What other items factored into the purchase price?

- The purchase price took into account scarcity value of EHP. - No other plantation of this large size is available for sale esp at this valuation - This is the last opportunity for FELDA/Malaysia or any other foreign parties to acquire an Indonesian company with massive land bank. - Indonesian government agrees to one-time exception to this deal.

6. How does deal benefit FELDA? - The deal will improve FELDA's crop profile as average age of EHP's trees is 7 years versus FELDA's 15 years.

- There would be a lot of collaborations and cross selling between FELDA and EHP. - Potential new businesses and synergies for FELDA Group in seedling, fertilizer, CPO trading, downstream/oleo-chemical; and potential entry to vast Indonesian market of 260 million people for FELDA Group’s finished and consumer products. 

7. How does the deal benefit the country?

- Investment in a major palm oil player in Indonesia is in line with Malaysian government's effort to ensure the country continues to be a major player in the global palm oil industry. - It will act as an impetus to move forward the agenda of the recently established Council of Palm Oil Producing Countries (CPOPC) to stabilize global palm oil prices.

 http://www.nst.com.my/news/2016/12/199364/faq-felda-eagle-high-plantation-deal, dated 25-12-2016