Friday 29 Mar 2024
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KUALA LUMPUR (Oct 8): 1Malaysia Development Bhd (1MDB) has come out to say that it sees the attacks by certain current and former politicians being directed at the strategic development company, as a form of sabotage.

"1MDB regrets that, despite repeated clarifications, certain current and former politicians continue to issue half-truths about the company," it said in a statement issued late this evening.

"It is now clear that this is part of a deliberate and politically-motivated attack, to sabotage not only our previously-planned energy initial public offering (IPO), but the ongoing implementation of our rationalisation plan," it added.

1MDB was responding to a press release issued yesterday (Oct 7) by former deputy prime minister Tan Sri Muhyiddin Yassin, who had called on Prime Minister Datuk Seri Najib Razak to heed the Malay rulers' call for the government to settle issues involving 1MDB.

"The characterisation of 1MDB as a 'debt-laden company' is misleading, as Tan Sri Muhyiddin, a former Cabinet member, knows full well that the value of 1MDB’s assets exceeds its debt," said the company.
 
"This fact is reinforced by the significant value indicated by local and international investors, for the ongoing sale of equity in Edra Global Energy Bhd and Bandar Malaysia," it added.
 
As a Cabinet member when 1MDB was formed, 1MDB said Muhyiddin is fully aware of its capital structure.

"With RM1 million in equity from its shareholder, the Ministry of Finance, 1MDB raised capital on the markets — which is the debt on the company's accounts," it said.
 
"Many businesses, both in Malaysia and abroad, have used debt to successfully build their asset base. In 1MDB's case, from RM1 million equity, total group shareholder equity of RM1.7 billion was generated as of March 31, 2014.

"Notwithstanding the subsequent and ongoing challenges which are well-documented and acknowledged, 1MDB remains confident of generating surplus value, as we progress with the rationalisation plan," it added.
 
1MDB said together with its 100% shareholder, the Government of Malaysia, they will continue to remain fully committed to executing its rationalisation plan, as presented to the Cabinet on May 29 this year. The plan involves, among others, a 'debt for asset swap' with International Petroleum Investment Co, a sale of equity in both Edra Energy and Bandar Malaysia, a sale of land in its Tun Razak Exchange project, and the disposal of non-core assets.

1MDB had said the combined proceeds from the rationalisation plan will substantially reduce its debt to a sustainable and manageable level, by the fourth quarter of 2015.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)

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