China Railway and Malaysian tycoon team up to bid land, 1MDB to announce on 31 December

Sin Chew Daily, 16 Dec 2015

(Kuala Lumpur, Hong Kong, 15 December) South China Morning Post reported earlier that China Railway Engineering Corp and Malaysian property tycoon Lim Kang Hoo team up to bid for 60% of equity in Bandar Malaysia land owned by 1MDB.

If the deal is successful, this will be the second effort of a Chinese company helping 1MDB to reduce its debt in several weeks. This also helps China Railway Engineering Corporation to bid for high speed rail linking Kuala Lumpur and Singapore. 1MDB would announce the outcome of bidding on 31 December.

However, the Iskandar Waterfront Holdings owned by Lim has denied its involvement. Hence it is believed that this tycoon with the net worth of USD650 million, ranking at No.27 is bidding through Ekovest, another listed company.

Quoting reliable sources, Wall Street Journal said China Railway Engineering Corporations and Iskandar Waterfront Holdings owned by Lim have proposed takeover with restraining power to buy 60% of equity near Bandar Malaysia in the heart of Kuala Lumpur. 1MDB would own the remaining 40% of equity.

1MDB acknowledges negotiating with several companies

According to reports, the said land is one of the two pieces that 1MDB have bought from the government with low price. The total size of the land is about 1.966700 million square feet. 1MDB has planned to develop it into a shopping, residential and entertainment hub.

1MDB, in its email reply to Wall Street Journal, acknowledges that it is currently negotiating with several companies. It did not offer any comments as negotiation is underway.

The report also quoted insiders that a property development company has offered a takeover with restraining power without naming the company.

On Nov 24, China General Nuclear Power Group and 1MDB reached agreement to buy its energy assets owned by 1MDB with USD2.3 billion involving 13 power plants located in five countries in Malaysia, Egypt, Bangladesh and others.
China General Nuclear Plant Group also helps 1MDB to shoulder RM7.43billion (USD1.74billion) of debt.

Original Source:
中鐵與馬富豪聯手競購地皮‧1MDB 31日公佈結果