FGV Annual Report 2014

55 Contingent Liabilities (continued) (vi) On 5 June 2012, FPISB and FELDA were sued by 956 settlers of Rancangan Felda Keratong 1 to 10 for alleged fraud and manipulation of the extraction rate of palm oil. The claim amounted to RM30.9 million for the year 2008 only. FPISB has filed a Memorandum of Appearance in High Court on 26 June 2012 and the Kuantan Court has yet to fix trial dates for this case. (vii) On 25 January 2013, FPISB and FELDA were sued by 351 settlers of Rancangan Felda Mempaga for alleged fraud and manipulation of the extraction of palm oil. The claim amounted to RM11.3 million for the year 2008 only. The matter which was fixed for trial on 22nd to 26th September 2014 have been vacated to give priority to hear Jengka A case. The Court has yet to fix trial dates for this case. The remaining claims are not material to be disclosed in the financial statements and deemed remote by the Directors. The above amounts are shown at gross before accounting for non-controlling interests and effects of the five years indemnity provided by Koperasi Permodalan Felda Berhad (“KPF”) in December 2013 as part of the acquisition of KPF’s interest in FHB. Based on available information and on legal advices received, the Directors are of the view that there is a reasonable chance of defending all the above claims and therefore, no provision has been made in the financial statements. 56 Significant Events during the Financial Year (a) On 14 January 2014, a subsidiary of Felda Global Ventures Downstream Sdn. Bhd. (“FGVD”), FGV Cambridge Nanosystems Limited (previously known as Cambridge Nanosystems Limited), has signed a Share Purchase Agreement for acquisition of GasPlas AS (“GP”), for a purchase price of GBP5.9 million (RM31.9 million). GP is a company incorporated in Norway and through its wholly-owned subsidiary, EnPlas Ltd which is incorporated in United Kingdom and based in Norwich, collectively holds patents and owned Micro-Wave Plasma reactors which will be used to produce high grade carbon nanotubes and graphene using crude palm oil and methane as the feedstock using a certain technology. The acquisition of GP was completed on 16 January 2014. (b) On 8 March 2014, a wholly-owned subsidiary of the Company, FGV Myanmar (L) Pte. Ltd. entered in a joint venture agreement with Pho La Min Trading Company Limited (“PLM”) to establish a joint venture company in the Republic Union of Myanmar to carry out the business of rubber plantation, processing, sale and marketing of rubber and other activities incidental and ancillary thereto and modifications and/or expansions thereof as mutually agreed by the parties. The joint venture company, FGV Pho La Min Company Limited was formed on 26 May 2014 and is presently dormant. (c) On 7 April 2014, the Board of Directors of the Company approved to increase the share capital of Felda Global Ventures Plantation Sdn. Bhd. (“FGVP”) and Felda Global Ventures Kalimantan Sdn. Bhd. (“FGVK”) by RM80,000,000 for the purpose of increasing the shareholders (FGVK) contribution of RM80,000,000 in Trurich Resources Sdn. Bhd. (“TRSB”) which was completed in July 2014. The total shareholders contribution amounting to RM160,000,000 into TRSB is equally contributed between FGVH and Lembaga Tabung Haji. (d) On 23 May 2014, FGV Cambodia (L) Pte. Ltd (“FGVC”), a wholly-owned subsidiary of FGV Investment (L) Pte Ltd, entered into a shareholders’ agreement with Co-Op Village Co. Ltd to establish FGV-CVC (Cambodia) Co. Ltd. (“FGV-CVC”) in the Kingdom of Cambodia to carry out the business of production and export of CSR 10 Rubber Blocks or other classification of processed rubber. FGV-CVC was incorporated on 4 June 2014 and operations commenced in September 2014. (e) On 31 May 2014, Felda Holdings Bhd. (“FHB”), a wholly-owned subsidiary of the Company, disposed of its 45.0% equity interest in Voray Holdings Limited for a total consideration of RM9.64 million, which resulted in a gain on disposal of RM12.62 million. Introduction Performance Highlights About FGV Reports Financial Statements Others Strategy and Value Creation Performance Review & Progress Foreword to Shareholders Annual General Meeting Annual Report 2014 pg 321