KUALA LUMPUR, Jan 5 ― State investor 1Malaysia Development Berhad (1MDB) maintained today it sold its 60 per cent stake in Bandar Malaysia to a China group of companies for RM7.41 billion, following questions over a discrepancy in an announcement to the Hong Kong Stock Exchange.
Earlier today, federal opposition lawmaker Tony Pua asked 1MDB to clarify if the sale price was RM7.41 billion or RM5.28 billion, after China Railway Engineering Corporation (CREC) declared the latter price to the Hong Kong bourse.
But in a statement, 1MDB said that CREC's declaration was based of the “estimated share of the net equity value” and not the land sale valuation itself.
“The starting point of any net equity value calculation, is the land sale valuation of RM12.35 billion, of which the Consortium’s 60% share equates to RM7.41 billion,” it said.
“This is the basis upon which the 10% deposit of RM741 million has been calculated and agreed upon by all parties,” it added.
However it said that the land sale valuation may be changed during the completion period of the sale depending on whether certain liabilities can be passed on to the consortium.
1MDB branded the questions regarding the sale as a “last ditch attempt” by opposition politicians to “undermine” the company's rationalisation process.
The sale is part of a rationalisation process by 1MDB to offest a RM42 billion debt it had incurred in the six years since its inception.
It also recently sold its energy arm, Edra, to a Chinese-Qatari consortium.
