KUALA LUMPUR, Nov 17 ― A PKR lawmaker today told state-owned 1Malaysia Development Berhad (1MDB) to disclose how much investment firm DuSable Capital Management earned from a share buyout deal with Yurus Private Equity Fund, claiming it could be as much as RM60 million.
Kelana Jaya MP Wong Chen claimed that DuSable, in its capacity as Yurus' investment advisor, would have received a portion of profits made by Yurus in its sale of shares in a master joint-venture agreement (JVA) to build solar power plants in Malaysia with 1MDB Synergy Sdn Bhd last year.
“Most managers of private equity funds have a profit sharing arrangement of 80 per cent to 20 per cent between the investor and manager,” he said at a news conference at the Parliament lobby here.
“If Yurus Private Equity made RM300 million from the deal, DUSable as the manager could have possibly profited a handsome RM60 million in fees for six months of work,” Wong Chen added.
In an earlier report, 1MDB said that 1MDB Synergy and Yurus entered a master JVA on April 11 last year to develop solar power plants with up to 500MW of capacity in the country, with the shareholding split 49:51 between Yurus and 1MDB Synergy.
1MDB later acquired the entire 49 per cent stake held by Yurus on October 2, 2014 at a price of US$69 million (RM302 million), in preparation for the former company's plans to issue an initial public offering (IPO) on its energy unit Edra Global Energy Bhd.
Wong Chen today also asked 1MDB whether it was true that the main investor in Yurus was Aabar Investment PJS, which in turn is a subsidiary of Abu Dhabi-based International Petroleum Investment Co (IPIC).
He said it would be “worrying” if the claim made by US paper the Wall Street Journal earlier this month were true, since IPIC is currently involved in a US$3.5 billion financing deal to help 1MDB's rationalisation plan.
“This revelation is worrying as it raises questions (as to) whether the US$69 million deal (with Yurus) was done at an arm's-length basis,” Wong Chen said, referring to a business term to describe a deal where two parties act in their own self interest and are not subject to any pressure or duress from the other party.