KUALA LUMPUR: We are not using the money from the stake sale in Maybank to help pay for the stake buy in Indonesia's PT Eagle High Plantations Tbk, said newly-appointed Federal Land Development Authority (Felda) chairman Tan Sri Shahrir Abdul Samad.

"The RM280 million raised from the small stake sale in Maybank will be channelled for the settlers' socio-economic interests," he said.

"It is speculative to suggest that our 2 per cent stake sale in Malayan Bank Bhd amounting to RM280 million is to help fund our 37 per cent purchase in PT Eagle High Plantations," Shahrir told reporters at a briefing here today.

He highlighted Felda is not borrowing money from any banks for the planned stake purchase in Eagle High.

"Felda settlers' interests are safeguarded and not impacted by this planned 37 per cent stake purchase in PT Eagle High Plantations amounting to US$505.4 million because it is being government funded," Shahrir said.

When asked if Felda is overpaying for a non-control stake in Eagle High, he replied, "The board had carefully assessed this deal. The US$505.4 million price tag is actually a discount from the previous price of US$680 million."

To another query why Felda is selling its investment in Maybank at this moment in time, Shahrir said the board saw it fit to strengthen its investment portfolio by monetising the assets as the opportunities present themselves.

He then went on to say Felda is looking to dispose of its hotel in London.

"We bought it quite some time ago. We hope in the near term to garner between RM500 million and RM1 billion for that asset."

Three years ago, FIC, the investment arm of Felda acquired a 4-star hotel in the upmarket Kensington area in London for £60 million or RM330 million. The Grand Plaza Hotel has 62 guest rooms and two units of three-bedroom serviced apartments.