What due diligence was missed in the EHP acquisition?

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No Specifics Provided on Missed Due Diligence in EHP Acquisition

The available information indicates that Felda's previous administration failed to conduct due diligence on Rajawali Capital prior to the acquisition of a stake in PT Eagle High Plantations (EHP). However, the specific aspects of due diligence that were missed are not detailed in the provided content.
Felda's Previous Administration Overlooked Due Diligence

It has been stated that the prior administration at Felda did not undertake the necessary due diligence concerning Rajawali Capital. This omission is highlighted in the context of the acquisition of EHP shares.
Rajawali Capital's Limited Financial Capacity Revealed

An investigation into Rajawali Capital's financial standing revealed that it possesses net tangible assets amounting to only US$7.2 million (RM29.5 million). This finding contrasts sharply with the substantial investment made by Felda.
Significant Investment Made in EHP Acquisition

In 2016, Felda, through its subsidiary FIC Properties Sdn Bhd, acquired a 37 per cent stake in EHP from Rajawali Capital for US$505.4 million. This transaction included a put option that permitted Felda to divest its stake at the initial purchase price.

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What due diligence was missed in the EHP acquisition?

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