PETALING JAYA, Dec 8: Iskandar Waterfront City Bhd’s shares were up half a sen on news that its subsidiary is part of a consortium that could bag 1Malaysia Development Bhd’s (1MDB) 60% stake in the 197 hectares Bandar Malaysia project.
Singapore’s The Straits Times reported yesterday that a subsidiary of the listed entity, Iskandar Waterfront Holdings Bhd (IWC), which is in a consortium with China Railway Engineering, is bidding for a stake in the project worth RM11 billion.
Its shares closed 0.63% higher at 79.5 sen, with some 481,500 shares done.
China Railway expressed interest in the deal to get an advantage into the multi-billion High-Speed Rail project, which is to be stationed at Bandar Malaysia.
The report puts IWC as a favourite for the deal. Permodalan Nasional Bhd was the only other bidder for 1MDB’s early November deadline.
The Straits Times quoted sources as saying that there are still several hurdles before finalising the deal – one being 1MDB’s need for cash to pay down its loans, and IWC’s preference for land swaps and other payments in kind.
Rumours are also rife of a fully funded Qatari bid, which is likely to be a straight cash-for-equity purchase.