By JAY WHY
Please check, double check and triple check your facts; it’s a mantra that was drilled into a rookie reporter even from day one! A journalist principal obligation is toreport on facts of public interest in an exact and comprehensible manner.
The same rule applies to responsible lawmakers; to tell the public the truth and not confuse them by twisting facts to score points!
1MDB which is a favourite punching bag for the opposition politicians was in the spotlightagainafteritannouncedthesharesaleandRM7.41billionlandsale valuation to a Malaysia-China consortium as part of its rationalisation process.
![]()
NewsreportssaidChinaRailwayGroupLtdmayhavecausedtheinitialconfusion whenitinformedtheHongKongExchangesandClearingLimited(HKEx)thatthe consortiumcomprisingitsunit ChinaRailwayEngineeringCorporation(M)SdnBhd (CREC)andIskandarWaterfrontHoldingsSdnBhd,ispayingRM5.28billioninsteadof the RM7.41 billion reported earlier.
1MDBhadonJanuary6clarifiedthatChinaRailway’srevisedfigureforthe controlling stake in Bandar Malaysia was in reference to the joint venture company’s estimatedshareoftheland’snetequityvalueanddidnotrefertothelandsale valuation.
Please check, double check and triple check your facts; it’s a mantra that was drilled into a rookie reporter even from day one! A journalist principal obligation is toreport on facts of public interest in an exact and comprehensible manner.
The same rule applies to responsible lawmakers; to tell the public the truth and not confuse them by twisting facts to score points!
1MDB which is a favourite punching bag for the opposition politicians was in the spotlightagainafteritannouncedthesharesaleandRM7.41billionlandsale valuation to a Malaysia-China consortium as part of its rationalisation process.
1MDBhadonJanuary6clarifiedthatChinaRailway’srevisedfigureforthe controlling stake in Bandar Malaysia was in reference to the joint venture company’s estimatedshareoftheland’snetequityvalueanddidnotrefertothelandsale valuation.
“Thevaluationcontainedintheannouncementmade byCREC toHKExrefers nottothelandsalevaluation,butinsteadtotheirestimatedshareofthenet equityvalueoftheBandarMalaysiaproject,basedoncertainassumptions, whicharesubjecttofurthernegotiationsduringtheCompletionperiod between January and June 2016.,” 1MDB said in a statement.
The starting point of any net equity value calculation, is the land sale valuation of RM12.35 billion, of which theConsortium’s 60% share equates to RM7.41 billion. This is the basis upon which the10% deposit of RM741 millionhas been calculated and agreed upon by all parties.
During the completion period, adjustments may be made to the RM7.41 billion landsalevaluation,dependingonwhetherornotcertainBandarMalaysia related liabilities can be passed to the Consortium e.g. the remainder contract costs for relocation of the existing facilities and the Bandar Malaysia sukuk
During the completion period, adjustments may be made to the RM7.41 billion landsalevaluation,dependingonwhetherornotcertainBandarMalaysia related liabilities can be passed to the Consortium e.g. the remainder contract costs for relocation of the existing facilities and the Bandar Malaysia sukuk
debt.
Theagreementexecutedbetweenthepartieson31December2015 provides for a robust and objective mechanism to determine, amongst others, these matters, which all parties have committed to.”
Now that 1MDB has clarified the matter, so YB please stop confusing the public! As usualyoualwaysdemandanswersbutrefusetoacceptevenwhenarational explanation is given.
1MDB’s clarification on Bandar Malaysia on 5 January 2016 1MDBnotesthatcertainquartershave attackedtheRM7.41billionlandsale valuationcontainedinarecentannouncementonthesuccessful ShareSaleand PurchaseAgreementexecutedwiththeIWH-CRECConsortium(Iskandar Waterfront HoldingsSdnBhd(“IWH”)andChinaRailwayEngineeringCorporation(M)SdnBhd (CREC)]for 1MDBtosell60%oftheequityintheBandarMalaysiaproject.
These appeartobelastditchattemptsby members of the opposition to undermine the company's rationalisation process.
The valuation contained in the announcement made by CREC to HKEx refers not to the land sale valuation, but instead to their estimated share of the net equity value of the Bandar Malaysia project, based on certain assumptions, which are subject to further negotiations during the Completion period between January and June 2016.
The starting point of any net equity value calculation, is the land sale valuation of RM12.35 billion, of which theConsortium’s 60% share equates to RM7.41 billion. This is the basis upon which the 10% deposit of RM741 million has been calculated and agreed upon by all parties.
DuringtheCompletionperiod,adjustmentsmaybemadetotheRM7.41billionland salevaluation,dependingonwhetherornotcertainBandarMalaysiarelated liabilitiescanbepassedtotheConsortiume.g.theremaindercontractcostsfor relocationoftheexistingfacilitiesandtheBandarMalaysiasukukdebt.
The agreementexecutedbetweenthepartieson31December2015providesfora robustandobjectivemechanism to determine, amongst others, thesematters, which all parties have committed to.
1MDB is focused now on taking the necessary steps and to procure the relevant consents in order to implement the legally binding agreements executed in 2015 for the sale of Edra, the debt for asset swap with IPIC and the sale of 60% equity in the Bandar Malaysia project.
IMDB’s Press Release on 31 December 2015.
Theagreementexecutedbetweenthepartieson31December2015 provides for a robust and objective mechanism to determine, amongst others, these matters, which all parties have committed to.”
Now that 1MDB has clarified the matter, so YB please stop confusing the public! As usualyoualwaysdemandanswersbutrefusetoacceptevenwhenarational explanation is given.
1MDB’s clarification on Bandar Malaysia on 5 January 2016 1MDBnotesthatcertainquartershave attackedtheRM7.41billionlandsale valuationcontainedinarecentannouncementonthesuccessful ShareSaleand PurchaseAgreementexecutedwiththeIWH-CRECConsortium(Iskandar Waterfront HoldingsSdnBhd(“IWH”)andChinaRailwayEngineeringCorporation(M)SdnBhd (CREC)]for 1MDBtosell60%oftheequityintheBandarMalaysiaproject.
These appeartobelastditchattemptsby members of the opposition to undermine the company's rationalisation process.
The valuation contained in the announcement made by CREC to HKEx refers not to the land sale valuation, but instead to their estimated share of the net equity value of the Bandar Malaysia project, based on certain assumptions, which are subject to further negotiations during the Completion period between January and June 2016.
The starting point of any net equity value calculation, is the land sale valuation of RM12.35 billion, of which theConsortium’s 60% share equates to RM7.41 billion. This is the basis upon which the 10% deposit of RM741 million has been calculated and agreed upon by all parties.
DuringtheCompletionperiod,adjustmentsmaybemadetotheRM7.41billionland salevaluation,dependingonwhetherornotcertainBandarMalaysiarelated liabilitiescanbepassedtotheConsortiume.g.theremaindercontractcostsfor relocationoftheexistingfacilitiesandtheBandarMalaysiasukukdebt.
The agreementexecutedbetweenthepartieson31December2015providesfora robustandobjectivemechanism to determine, amongst others, thesematters, which all parties have committed to.
1MDB is focused now on taking the necessary steps and to procure the relevant consents in order to implement the legally binding agreements executed in 2015 for the sale of Edra, the debt for asset swap with IPIC and the sale of 60% equity in the Bandar Malaysia project.
IMDB’s Press Release on 31 December 2015.
BandarMalaysia:SuccessfulExecutionofShareSale&PurchaseAgreement for 60% Equity of 1MalaysiaDevelopmentBerhadGroup(“1MDB”)todayexecutedaShareSale andPurchase Agreementtosell60%oftheequityinBandarMalaysiaSdnBhd (“BMSB”) to a Consortium comprising Iskandar Waterfront Holdings Sdn Bhd (“IWH”) and China Railway Engineering Corporation (M) Sdn Bhd (CREC).The consortium known as IWH-CREC Sdn Bhd is a 60:40 joint-venture between IWH and CREC. IWH, themaster developer ofthe Flagship A portionof Iskandar Malaysia Economic GrowthCorridor,isapublic-privatepartnershipbetweenCredenceResourcesSdn Bhd (60%) and Johor State Government-owned, Kumpulan Prasarana Rakyat Johor Sdn Bhd (40%).IWH currently owns 4,300 acres of prime waterfront land in Iskandar Malaysia.CREC isone ofthe world’s largest engineering andconstruction firms, andalso has businesses,amongstothers,inindustrialmanufacturing,realestatedevelopment, and resources andmineral products. It iscurrently ranked number 71 inthe Fortune 500, with a turnover exceeding US$100 billion per annum.TheIWH-CRECConsortiumhasvalued100%oftheBandarMalaysialandatRM12.35billion.Accordingly, its60%shareoflandwillcostRM7.41billion.1MDBwill receivea10%depositofRM741millionuponexecutionoftheShareSaleand PurchaseAgreement,withcompletionofthetransactionexpectedbyendJune 2016.The ShareSale andPurchase Agreementis theoutcome ofa Requestfor Proposal (RFP)launchedinJune2015bytransactionadvisor,CHWilliamsTalhar&Wong (“WTW”). WTWreceived over 40 expressionsof interest from localand international investors including from Singapore, China, Japan, Korea and Australia. Four bidders were shortlisted in September 2015, with two final, binding and funded bids received on 9 November 2015.Today’sagreement marksthefinalmajor milestoneinthe1MDB rationalisationplan aspresentedtotheCabinetofMalaysiaon29May2015,followingonfromthe execution of the Binding Term Sheet with IPIC in June 2015 and the Share Sale and Purchase Agreement with CGN Group in November 2015.
Arul Kanda, President & Group Executive Director, 1MDB, said: “We are delighted withtheoutcomeofwhathasbeenarigorous,highlycompetitiveandvalue-enhancing process, whichhasexceeded our expectations.
"The Consortium is a highly attractive development partner for Bandar Malaysia and their bid was fully in line with the objectives outlined in the RFP, namely value maximisation, acceptable commercial terms and certainty of transaction execution.
"As a result of this sale, the BandarMalaysiadevelopmentwillbe76%ownedbyMalaysians,ofwhich approximately 54% of the project will be owned by the Federal and Johor State governments, via 1MDB/MOF Inc and KPRJ respectively.
"The inclusion of CREC as an international partner with 24% of project equity represents significant Foreign Direct Investment (FDI) and is a major testament tothe continued strength and attractivenessoftheMalaysianeconomy, aswemoveintohighincomenation status.”
TanSriDato’ Lim KangHoo,IWH GroupExecutiveViceChairman,said: “The participation of IWH in this transaction aligns with our role as a key master developer in Malaysia. The capability of IWH to undertake such major projects is proven and is due to our philosophy of working in collaboration, cooperation and consultation with all stakeholders.
"The involvement of IWH in the Bandar Malaysia project creates an important link with the proposed terminus for the High Speed Rail project and other on-going developments in Iskandar Malaysia. We are proud to be selected and look forward to working closely with 1MDB/MOF Inc. to execute the Bandar Malaysia project.”
Yao Guiqing, General Manager of China Railway Engineering Corporation and Managing Director of China Railway Group Limited, said: “The participation of CREC as a Consortium partner is due to our confidence in the Malaysian economy, the strength of leadership, the high quality legal and regulatory environment and most importantly, the unique nature of Bandar Malaysia as conceived by 1MDB and as a strategic development project for the Governmentof Malaysia.
"CREC views our investment in Malaysia as a key part of our global portfolio. In particular, we have globalexpertiseinmasterplanningandconstructionoftransport-oriented developments. We look forward to transferring technology, knowledge sharing and workingclosely with ourMalaysian partners to makethe Bandar Malaysia development a world class destination to be proud of.”
The BandarMalaysiadevelopment received PlanningApprovalfrom Dewan BandarayaKualaLumpurinOctober2015.The“approval-in-principle”,granted based on Bandar Malaysia’s masterplan, is for a mixed-used development with an average gross plot ratio of 4.05, across the entire 486-acre site in Sungai Besi.
Strategically located about seven kilometres from Kuala Lumpur City Centre (KLCC), Bandar Malaysia will serve as Kuala Lumpur’s gateway for the high speed rail-line (HSR) to Singapore and become a central transport hub in the city via MRT line 2 and line 3, KTM and ERL.
There are also advanced plans by the government to improve and provide new highwayconnectionsfromthecitycentretothesouththatwillseamlesslylink Bandar Malaysia to other areas within Greater KL.
Bandar Malaysia will be a mixed-use urban development that is expected to serve as a catalyst for the transformation of Greater Kuala Lumpur. The masterplan includes a blueprint for creating quality city living, establishing a global business and creative enterprise hub, and becoming a retail, lifestyle and tourism destination.
The project, which will be developed over a 15 to 25-year period at a projected Gross Development Value of RM150 billion, is designed to become Malaysia’s new international landmark when completed.
So, Tony Pua... anything else?
"The Consortium is a highly attractive development partner for Bandar Malaysia and their bid was fully in line with the objectives outlined in the RFP, namely value maximisation, acceptable commercial terms and certainty of transaction execution.
"As a result of this sale, the BandarMalaysiadevelopmentwillbe76%ownedbyMalaysians,ofwhich approximately 54% of the project will be owned by the Federal and Johor State governments, via 1MDB/MOF Inc and KPRJ respectively.
"The inclusion of CREC as an international partner with 24% of project equity represents significant Foreign Direct Investment (FDI) and is a major testament tothe continued strength and attractivenessoftheMalaysianeconomy, aswemoveintohighincomenation status.”
TanSriDato’ Lim KangHoo,IWH GroupExecutiveViceChairman,said: “The participation of IWH in this transaction aligns with our role as a key master developer in Malaysia. The capability of IWH to undertake such major projects is proven and is due to our philosophy of working in collaboration, cooperation and consultation with all stakeholders.
"The involvement of IWH in the Bandar Malaysia project creates an important link with the proposed terminus for the High Speed Rail project and other on-going developments in Iskandar Malaysia. We are proud to be selected and look forward to working closely with 1MDB/MOF Inc. to execute the Bandar Malaysia project.”
Yao Guiqing, General Manager of China Railway Engineering Corporation and Managing Director of China Railway Group Limited, said: “The participation of CREC as a Consortium partner is due to our confidence in the Malaysian economy, the strength of leadership, the high quality legal and regulatory environment and most importantly, the unique nature of Bandar Malaysia as conceived by 1MDB and as a strategic development project for the Governmentof Malaysia.
"CREC views our investment in Malaysia as a key part of our global portfolio. In particular, we have globalexpertiseinmasterplanningandconstructionoftransport-oriented developments. We look forward to transferring technology, knowledge sharing and workingclosely with ourMalaysian partners to makethe Bandar Malaysia development a world class destination to be proud of.”
The BandarMalaysiadevelopment received PlanningApprovalfrom Dewan BandarayaKualaLumpurinOctober2015.The“approval-in-principle”,granted based on Bandar Malaysia’s masterplan, is for a mixed-used development with an average gross plot ratio of 4.05, across the entire 486-acre site in Sungai Besi.
Strategically located about seven kilometres from Kuala Lumpur City Centre (KLCC), Bandar Malaysia will serve as Kuala Lumpur’s gateway for the high speed rail-line (HSR) to Singapore and become a central transport hub in the city via MRT line 2 and line 3, KTM and ERL.
There are also advanced plans by the government to improve and provide new highwayconnectionsfromthecitycentretothesouththatwillseamlesslylink Bandar Malaysia to other areas within Greater KL.
Bandar Malaysia will be a mixed-use urban development that is expected to serve as a catalyst for the transformation of Greater Kuala Lumpur. The masterplan includes a blueprint for creating quality city living, establishing a global business and creative enterprise hub, and becoming a retail, lifestyle and tourism destination.
The project, which will be developed over a 15 to 25-year period at a projected Gross Development Value of RM150 billion, is designed to become Malaysia’s new international landmark when completed.
So, Tony Pua... anything else?