Controversial transaction: In April 2017, Felda completed the purchase of a 37% stake in Eagle High from Rajawali for US$505.4mil, which was reportedly higher than the valuation by two independent appraisers on the company of US$264mil and US$404mil, respectively.
PETALING JAYA: Moody’s Investors Service views the government’s financial aid of RM6.2bil (US$1.5bil or 0.4% of gross domestic product or GDP) to the Federal Land Development Authority (Felda) as credit negative.
The rating agency said the financial assistance would add to the government’s debt burden, which is already significantly above the median of A-rated sovereigns.
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