KUALA LUMPUR: Permodalan Nasional Bhd (PNB) president and group chief executive Tan Sri Hamad Kama Piah Che Othman said he is “not aware” of a media report on  PNB’s purchase of 1Malaysia Development Bhd’s (1MDB) Islamic bonds.

As such, he refused to comment on the matter when asked by reporters yesterday.

A local daily had reported on March 1 last year that the troubled strategic investment fund had issued RM1.5 billion worth of Islamic bonds, and that some of the buyers of the unrated bonds were PNB and pilgrim fund Lembaga Tabung Haji.

Hamad Kama Piah was speaking at a press conference held for PNB’s receipt of The Malaysia Book of Records certificate of recognition for PNB’s Malaysian Unit Trust Week  programme, which recognises the event as the “Longest Running Unit Trust Exhibition” in Malaysia.

He also declined to confirm or deny the rumoured merger between S P Setia Bhd and Sime Darby Bhd’s property business.

There has been persistent reports since late last year that the senior management of S P Setia (fundamental: 1.4; valuation: 1.2) had mooted for the property arm of Sime Darby (fundamental: 1; valuation: 0.9) to acquire the former. PNB is the major shareholder of both companies.

Hamad Kama Piah said he could not comment as the companies involved are listed on the exchange, but said that PNB is always on the lookout for opportunities to enhance the value of its investments.

Pressed on whether he was denying that such a merger was on the cards, Hamad Kama Piah said: “I don’t deny or confirm the rumour. What I said was that we are always looking to create value for our portfolio ... It does not necessarily concern only [S P Setia and Sime Darby].”

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This article first appeared in The Edge Financial Daily, on April 2, 2015.