Was Bandar Malaysia sold to China group for RM7.41b or RM5.28b? Pua asks 1MDB

1MDB announced on December 31 that the Chinese corporation and Johor-based Iskandar Waterfront Holdings will purchase a 60 per cent stake in its Bandar Malaysia land bank. ― File pic
1MDB announced on December 31 that the Chinese corporation and Johor-based Iskandar Waterfront Holdings will purchase a 60 per cent stake in its Bandar Malaysia land bank. ― File pic

KUALA LUMPUR, Jan 5 ― DAP lawmaker Tony Pua urged today state investor 1Malaysia Development Berhad (1MDB) to clarify the price of its Bandar Malaysia land to a Chinese consortium following a glaring discrepancy in the figures announced on the Hong Kong Stock Exchange.

The federal opposition MP noted that 1MDB had announced the sale of 60 per cent of the land parcels to China Railway Engineering Corporation at RM7.41 billion on New Year’s Eve, but two days ago, the Chinese firm declared the sale price to the Hong Kong bourse to be only RM5.28 billion.

“Was it merely an innocent difference in the interpretation of the ‘purchase price’ for the 60% stake in Bandar Malaysia by the China-led consortium?” he asked in a statement.

He noted that 1MDB had “clearly specified” a 10 per cent deposit of RM741 million will be paid to it upon the signing of the agreement.

The initial 1MDB statement said the China Railway group had values 100 per cent of Bandar Malaysia at RM12.35 billion and 1MDB's 60 per cent was worth RM7.41 billion, which the company would buy and pay RM741 million by June 2016.

However, the announcement made by China Railway to the Hong Kong market on January 3 stated that it had entered into a share sale agreement with 1MDB in which its 60 percent stake in Bandar Malaysia was valued at RM5.279 billion only.

To rectify this disparity, Pua suggested 1MDB make public its sales to the Chinese group as it involves Malaysian taxpayers’ money.

“Therefore, we call upon 1MDB to make public the sales and purchase agreement signed between 1MDBRE and Iskandar Waterfront Holdings ― China Railway Engineering Corporation consortium to ensure that there will be no ambiguity to the understanding of the agreement between the relevant parties,” the Petaling Jaya Utara MP said.

1MDB announced on December 31 that the Chinese corporation and Johor-based Iskandar Waterfront Holdings will purchase a 60 per cent stake in its Bandar Malaysia land bank.

The state-owned investment firm will receive RM7.42 billion from the sale, which is part of its third and final rationalisation plan to settle its outstanding debt.