Bandar Malaysia: Arul Kanda admits there is no agreement on price ,confirms that proceeds from sale might well be ZERO

by Ganesh Sahathevan
1 MBD CEO Arul Kanda has told Reuters:
“The agreement executed between the parties on Dec 31, 2015 provides for a robust and objective mechanism to determine, among others, the final project equity value, which will be different from the agreed land sale value,”

This all but confirms what was reported on this  blog  yesterday, that the deal is structured such that 1 MDB may not receive anything at all from the sale of Bandar Malaysia.
To be read in conjunction with :
Bandar Malaysia deal: China Railway Engineering does not admit to paying RM7.14 billion, or being party to sale ,while Arul & Kang Hoo agree that payment will be "deferred"


1MDB says US$1.7b asset sale value to be adjusted

Reuters Published Today 12:49 pm Updated Today 1:24 pm


Malaysian state fund 1MDB today said its US$1.7 billion (RM7.4 billion) property project sale to a Malaysian-Chinese group will be adjusted to reflect certain liabilities and relocation costs associated with the land.

The fund sold its 60 percent stake in Bandar Malaysia to Malaysian tycoon Lim Kang Hoo’s Iskandar Waterfront Holdings and its partner, state-run China Railway Engineering Corp (CREC) for RM7.41 billion (US$1.71 billion), wrapping up a major asset sale for the fund whose troubles have roiled domestic politics.

But critics have questioned the deal after CREC said in a bourse filing on the Hong Kong stock exchange yesterday that the acquisition cost was only RM5.28 billion, or US$500 million short of 1MDB’s sale value.

1MDB president Arul Kanda Kandasamy clarified in a statement to Reuters that between January and June 2016, adjustments would be made to the RM7.41 billion value, depending on whether or not certain project liabilities were passed.

These included relocation costs for the existing facilities and a Bandar Malaysia sukuk, he said.

“The agreement executed between the parties on Dec 31, 2015 provides for a robust and objective mechanism to determine, among others, the final project equity value, which will be different from the agreed land sale value,” Arul Kanda said in the statement.

CREC’s announcement was based on certain assumptions which were subject to further negotiations, he added.

Scandal-hit 1MDB had racked up more than US$11 billion in debt - a burden that had weighed on the currency - before beginning a restructuring programme in 2015.

Opposition leaders have slammed the discrepancies in the deal. Tony Pua, member of parliament with the opposition DAP has asked 1MDB to disclose the sale and purchase agreement between the companies.

- Reuters

Read more: https://www.malaysiakini.com/news/325511#ixzz3wMYHtOb8

Comments

Post a Comment

Popular posts from this blog

Sydney is not Soweto, its Asian migrants are not coloureds, or persons of colour - South African Australian Judge Angus Morkel Stewart's decision in Faruqi v Hanson an insult to anyone who is not white

Image
 by Ganesh Sahathevan  In the recent Federal Court Australia decision in   Faruqi v Hanson   Mr Justice Angus Morkel Stewart (Stewart J)  found at [242]: I am comfortably satisfied that both groups of people in Australia that I have identified, being persons of colour who are migrants or of relatively recent migrant heritage and persons of colour who are Muslim, are reasonably likely, in all the circumstances, to have been offended (ie profoundly and seriously), insulted, humiliated and intimidated by Senator (Pauline ) Hanson’s tweet. The case concerned   a tweet  that One Nation leader Pauline Hanson directed at  Deputy Greens leader Senator  Mehreen Faruqi. Mehreen is Pakistani Muslim who continues to advocate for Pakistan as a senator of the Senate, Parliament Of Australia.  Senator Hanson wrote in her tweet "piss off back to Pakistan" after Senator Faruqi commented on the death of Queen Elizabeth II. While Stewart J's has hand...
Read more

Ex NSW LPAB Executive Officer Louise Pritchard ,subject of queries from The Australian, hired by Sydney University since early 2019 -NSW LPAB has never explained her departure, UYSD the reasons for her appointment

Image
  by Ganesh Sahathevan  In January 2019 The Australian reported:  The body overseen by Chief Justice Tom Bathurst responsible for deciding who can practise law in NSW relied on a wildly defamatory Malaysian blog depicting ABC journalists, former British prime minister Tony Blair, financier George Soros and others as part of a global conspiracy when deciding to deny a would-be solicitor a certificate to practise. Chief Justice Bathurst and Legal Practitioner Admission Board executive officer Louise Pritchard declined to answer The Australian’s questions about how the article came into the board’s hands and why its members felt the conspiracy-laden material could be relied upon as part of a decision to deny Sydney man Ganesh Sahathevan admission as a lawyer. Nor would either say which of the 10 members of the LPAB, three of whom are serving NSW Supreme Court judges, was on the deciding panel. Ms Pritchard has left her role at the LPAB since The Australian began making inqui...
Read more

Strata managers' aversion to contact with tenants can leave strata managers exposed to personal liability

Image
 by Ganesh Sahathevan      Advice for living in, or buying into, a strata community Strata managers are employed to manage strata schemes which are often home to renters as well as owners. However, in evasion of that which they are paid to do there are instances where strata managers have attempted  to evade their duties by refusing to  deal with tenants.   Even this writer can recall an instance where the strata manager warned that it was against the law for tenants to contact him directly.  The instances where strata managers have refused to deal with tenants occur when the issues raised concern fairly pedestrian maintenance issues, for example blocked plumbing and the like. Having said that, tenants do actually have a legal right to a great many things, including being informed (and presumably make representations) when strata schemes consider re-development. Strata managers who seek to stand in place of strata committees  are even more e...
Read more