RM7.41 billion purchase consideration for Bandar Malaysia project equity stays

RM7.41 billion purchase consideration for Bandar Malaysia project equity stays

KUALA LUMPUR, Jan 6  — The purchase consideration of RM7.41 billion for 60% equity in Bandar Malaysia project to 1Malaysia Development Bhd (1MDB) does not change regardless of the settlement agreement, the strategic investment company said.

1MDB said the purchase consideration by Iskandar Waterfront Holdings (IWH)-China Railway Engineering Corporation Sdn Bhd (CREC) consortium for the equity would vary depending on the agreement between the two parties and relevant consent on the passing through of Pangkalan Udara Kuala Lumpur (PUKL) relocation cost and existing sukuk.

It said should 1MDB and the consortium agree on the costs and manage to procure the consent, the consortium would pay 60% of its share of the cost and the purchase consideration would be adjusted accordingly.

“RM12.35 billion land value less RM1.9 billion PUKL relocation cost less RM1.63 billion sukuk cost equals to RM8.8 billion, of which the 60 per cent consortium’s share is RM5.3 billion,” it said.

However, it said, if the costs cannot be agreed to or the consents cannot be procured, then the purchase consideration of RM7.41 billion would be paid in full to 1MDB, which would still be responsible for the costs.

“In either scenario above, the purchase consideration of RM7.41 billion to 1MDB does not change.

“The only difference is whether 1MDB receives the amount in full, then pays for the costs or whether the consortium pays for its share of the costs and remits the balance of RM5.3 billion to 1MDB,” it added.

1MDB has also guaranteed that Perbadanan Perwira Hartanah Malaysia’s (PPHM), a wholly-owned unit of Lembaga Tabung Angkatan Tentera, position as the turn key contractor and the over 50 appointed Bumiputera subcontractors would remain regardless of the final deal structure.

— BERNAMA

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