Business

Friday March 8, 2013

Refund for Country Heights Grower Scheme investors begins today


Management company will pay first 10% of its growers’ fees totalling RM21.5mil today

KUALA LUMPUR: Plentiful Gold-Class Bhd, the management company of the now-defunct Country Heights Grower Scheme (CHGS), will refund the first 10% of its investors/growers' fees amounting to RM21.5mil today.

This is following the approval for the voluntary termination of the scheme by over 90% of its growers at a meeting held on Feb 8.

Plentiful Gold-Class said in a statement that crossed cheques would be issued and posted to the respective growers with due care to ensure the cheques were addressed correctly and in accordance with the information in the Register of Growers.

“There had been incidences in the past where cheques were not cashed or lost,” said the company.

It added that in such an event that the cheques were not cashed for whatever reasons within six months and no money was claimed within one year from the date of the issue of the cheques, the company would act in accordance with the provisions of the Unclaimed Monies Act, 1965.

The growers' meeting was held in accordance with the provisions in the Trust Deed, and a circular was circulated to the growers on Jan 17.

At the meeting, it was decided by a majority vote that 10% of the growers' fee would be paid back to the growers within 30 days of the approval for the resolution on the CHGS voluntary termination.

The remaining 90% is to be paid within a period of six months from the date of approval of the said resolution. A total of RM215.5mil would eventually be paid out to the growers, constituting a 100% refund.

CHGS founder and chairman Tan Sri Lee Kim Yew is also making an additional goodwill payment of RM25mil to be paid proportionately to all growers within six months from the date of the approval of the resolution.

Plentiful Gold-Class also said that the CHGS Gua Musang estate in Kelantan had been put up for sale via an open tender in the market with a reserve price of RM170mil.

“We will continue to update our growers on developments of the sale and the subsequent repayment arrangements,” it said.

CHGS was Malaysia's first oil palm farm-sharing scheme that provided the opportunity to the subscribers to participate in the palm oil industry in Malaysia.

Plentiful Gold-Class in the last five years had paid a total return of 48%, consisting of a rate of return of 8% per annum for the first three years and 12% over the subsequent two years.

It paid a total net yield of RM78.5mil for the period between 2007 and 2011.

With the additional RM25mil goodwill payment together with the full refund of the grower's fee pursuant to the termination of the scheme, the growers are set to collectively receive a total of RM319mil.

This is compared to the total funds raised at RM215.5mil when the scheme was first launched in 2007.

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