1MDB remains focused on rationalisation plan despite recycled allegations
Tun Dr. Mahathir Mohamad in his latest blog posting today recycled old and unproven allegations, which have been addressed by 1MDB in various statements shared with the media.
On 30 June 2015, in our response to one of Tun Mahathir’s postings, 1MDB have provided a detailed explanation on the flow of funds from our investment in the joint venture with PetroSaudi International.
We have also explained, on several occasions, our rationale for the price we paid in the acquisition of our energy assets. As we had explained in our statement dated 30 June 2015, 1MDB believe that the value we paid for these assets - which may have involved a premium in certain instances, as is common when acquiring another business - is commensurate with their existing and future potential.
These recycled allegations not only cast aspersions on 1MDB but also impacts the day-to-day operations of the company. 1MDB have repeatedly responded to these unfounded allegations by Tun Mahathir as evidenced in our statements on 10, 16, 18 and 30 June 2015.
1MDB would now like to remain focused on the successful implementation of our rationalisation plan, which was presented to the Cabinet on 29 May 2015.
Since then, 1MDB has been making good progress, beginning with the repayment of a US$975 million (approx. RM3.6 billion) loan and execution of a binding term sheet with International Petroleum Investment Company (IPIC) that will ultimately result in the reduction of approximately RM16 billion of the company’s debt.
We have also appointed an independent real estate consultant for monetisation of the company’s land parcels in Bandar Malaysia, Air Itam and Pulau Indah.
With regards to Bandar Malaysia, 1MDB have received expressions of interest from 40 local and international parties to be development partners for our 486-acre Bandar Malaysia project, who are now in a detailed due diligence process.
1MDB is also now in due diligence with shortlisted local and international parties in relation to a sale of our investment in Edra Global Energy Berhad.
Collectively, these tangible actions by 1MDB will significantly reduce debt and ensure the long term sustainability of our three core assets, namely TRX, Bandar Malaysia and Edra Global Energy.