TRX City Sdn Bhd has given IWH-CREC Sdn Bhd an extension to pay the remaining RM1.1 bil upfront deposit for the latter’s purchase of 60% in the Bandar Malaysia project.
TRX, which is wholly owned by Minister of Finance Inc, agreed to move the deadline for IWH-CREC to settle the payment to Sept 15 from April 30, citing the Covid-19 pandemic, Finance Minister Tengku Zafrul Tengku Abdul Aziz told Damansara MP Tony Pua in a parliamentary reply today.
TRX has received RM148.2 mil from IWH-CREC, or 2% of the RM6.45 bil from the sale of the equity stake in the mega project, Zafrul said.
“The balance of the sale proceeds will be received in stages up until 2023,” he added.
TRX was the parent company of Bandar Malaysia Sdn Bhd (BMSB), the master developer of the 197ha Bandar Malaysia project located at the site of the former Royal Malaysian Air Force in Jalan Sungai Besi.
But on Dec 17 last year, TRX sold its stake in BMSB to IWH-CREC for RM7.41 bil, after the companies signed a restarted shared and amended share sale agreement and shareholder agreement.
IWH-CREC is a 60:40 joint venture between Iskandar Waterfront Holdings Sdn Bhd (IWH) and China Railway Engineering Corp (M) Sdn Bhd (CREC).
Lim Kang Hoo holds a 63% stake in IWH, while Johor state government’s Kumpulan Prasarana Rakyat Johor Sdn Bhd owns 37%. Meanwhile, CREC is expected to have a stake of 24% in the project.
Then finance minister Lim Guan Eng said the revived deal warranted a larger advance payment of RM1.24 bil from IWH-CREC. This included an RM741 mil deposit plus an additional RM500 mil.
The RM7.41 bil includes IWH-CREC’s commitment to taking up a 60% obligation on an RM1.6 bil sukuk issued by Bandar Malaysia. – July 22, 2020
