1MDB seals Bandar Malaysia share sale for RM7.41bn

1MDB seals Bandar Malaysia share sale for RM7.41bn

Share purchase agreement signed, Iskandar-China Railway consortium to pay RM741mil deposit.

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KUALA LUMPUR:
The government’s controversial investment arm 1Malaysia Development Berhad has sealed a deal to sell a 60 percent stake in its subsidiary Bandar Malaysia Sdn Bhd for RM7.41 billion.

The company signed the share purchase agreement yesterday with a consortium comprising Iskandar Waterfront Holdings Sdn Bhd and China Railway Engineering Corporation (M) Sdn Bhd.

The consortium will develop a 486-acre on the site of the former RMAF base in Sungai Besi for a mixed-development comprising housing, and commercial and lifestyle facilities.

The consortium, a 60:40 partnership between IWH and China Railway, has valued all the land at RM12.35 billion, pricing the 60 percent stake at RM7.41 billion.

The consortium will pay the 10 percent deposit of RM741 million as soon as the deal is executed, Berita Harian Online reported. It quoted 1MDB chief executive Arul Kanda Kandasamy as saying the transaction was expected to be completed by June.

Second Finance Minister Ahmad Husni Mohamad Hanadzlah witnessed the signing of the agreement, the report said.

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