Felda project boost for Iris
KUALA LUMPUR: When it was announced in early August that the Federal Land Development Authority (Felda) will part with more than RM110 million for 25 per cent of Iris Corp Bhd, many was sceptical if the deal would benefit Felda.
This was because Felda's offer of 28 sen a share for Iris valued the company at a premium.
Iris last traded at 21.5 sen a share yesterday.
Even when the deal was announced, those close to Felda had told Business Times that the authority values Iris much more than 28 sen a share because of what Felda can bring to the table.
Yesterday, some of the Felda valuation jigsaw became clearer when Iris told the stock exchange that it had signed a memorandum of understanding with Felda for the Sentuhan Kasih project in several states in Peninsular Malaysia.
In total, Iris' involvement in the project will be in seven Felda settlements.
Interestingly, Felda had given Iris a RM39.47 million contract last November under the Sentuhan Kasih project to build and develop an integrated communi-ty centre in Felda Tenggaroh, Mersing, in Johor.
If that value is taken as the benchmark, the collective value of the seven projects could be worth slightly more than RM270 million for Iris.
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