KUALA LUMPUR, Jan 7 – Malaysia remains the ultimate owner of the Bandar Malaysia project, with 76 per cent stake while a Chinese entity commands only 24 per cent equity, 1Malaysia Development Bhd (1MDB) said. 1MDB, in a statement Wednesday, said this is on the basis of 40 per cent equity owned by 1MDB or the Ministry of Finance Inc, 36 per cent by Malaysia’s Iskandar Waterfront Holdings Sdn Bhd (IWH) and 24 per cent by China Railway Engineering Corporation Sdn Bhd (CREC).
Alternatively, 1MDB said the government owned 54 per cent equity in the project while private sector held the rest. It said this was derived from 40 per cent stakeholding by Kumpulan Prasarana Rakyat Johor, a Johor government investment arm, in IWH which translated into 14 per cent stakeholding in Bandar Malaysia.
Therefore, the rest of the stake in IWH is owned by private entity Credence Resources Sdn Bhd. Last week, 1MDB signed a share sale and purchase agreement with IWH-CREC consortium to sell a 60 per cent equity in the Bandar Malaysia project for RM7.41 billion.
