The World Anthem




by el dorado, Donplaypuks® intrepid correspondent for land scam affairs


Today's press release by 1GDB and its CEO Arul Kaunda Kundi that its originally announced $7.41 billion price tag for sale of a 60% equity stake in Bandar Tun Lazak Ltd. to a local-China JV company

"will be adjusted to reflect certain liabilities and relocation costs associated with the land"

is a clear admission of a major screw up by 1GDB. CLICK HERE.

In fact, it is now clear that serially lying PM Grossmajib, 1GDB, its Chairman, Board of Directors and CEO Arul Kaunda Kundi deliberately misled the public and international markets by claiming that 1GDB's debts will be reduced by $7.41 billion. 

If it was not deliberate, then it is incompetency of the most unacceptable order given that PM Grossmajib who is 1GDB's "Chief Advisor" & Finance Minister, the MoF and 1GDB are all involved and should know better.

As it stands, the China company is absolutely correct that the price tag for the 60% JV is $5.28 billion and not $7.41 billion.

The Bandar Tun Lazak land may have been valued at $12.35 billion, but all the liars connected with 1GDB very conveniently "forgot" to mention that equity shareholders will also look at the company's liabilities and financial obligations!

The JV is NOT merely buying the land. It is buying 60% of the paid-up share capital of Bandar Tun Lazak Ltd. (equity stake).

Therefore the price of this 60% equity stake, as per internationally accepted valuation norms, would be based on the estimated current market value of the land, taking into account also development costs already incurred, approvals, licences etc. PLUS debtors LESS liabilities such as creditors and bank loans (sukuk).

The JV will not pay $X (60% of market value of shares) + $2.13 billion of bank loan to 1GDB. This is because the $2.13 billion bank loan liability is already included in the overall share valuation. It is Bandar Tun Lazak Ltd. which will have to repay the bank loan from its future profits or from further increase in share capital, contributed 60%:40% by JV and 1GDB.

To put it simply, shareholders who have already paid full market price for their equity stake, will only receive dividends in future from the cash flow of Bandar Tun Lazak Ltd. AFTER the company has complied with the terms and conditions of its bank loan such as servicing interest and repaying capital amounts as and when due.

So, it is absolutely stupid to suggest that the local-China JV will pay market value for the 60% stake AND $2.13 billion to 1GDB for the bank loan.

This would be akin to asking them to pay twice for the $2.13 billion bank loan liability. You think China is that stupid? More so, when it does not own 100% of Bandar Tun Lazak Ltd and it will also have to substitute guarantees for its share of the loan (sukuk)?

Why on earth would the JV pay 100% of the bank loan ($2.13 billion) to 1GDB, when 1GDB continues to be a 40% equity shareholder in Bandar Tun Lazak Ltd?

How could Chartered Accountants and PhD holders in (international finance/public administration/economics etc.) PMO, 1GDB, MoF and in the office of the Chief Secretary to the government not understand this, but instead make a giant cock-up of it?

The other possibility is that with a change in major shareholders, the bank may have a condition that it has the right to terminate the loan if it deems that there is a risk the loan will not be repaid.

But this is unlikely since 40% is ultimately still owned by the government where MoF owns 100% of 1GDB. Even if the bank calls on the loan, it will be a simple matter for 1GDB to replace it with another bank, given the new 60% shareholders are a China state-owned company and a local state government, and the balance of 40% is ultimately owned by the Malaysian government. Neither 1GDB nor the JV will have to come with their own cash of $2.13 billion to replace the existing bank loan (sukuk).

It is also unlikely since the major sukuk lender is a GLC i.e. LTH with $1 billion owed to it!!!

The other matter that has to be cleared up is that the shareholdings in Bandar Tun Lazak are supposed to be:

a. 1GDB/MoF = 40%.
b. China - 40% x 60% = 24%.
c. Local companies - 60% x 60% = 36%.

NB: China + Local company = JV CO. = 24% + 36% = 60% of equity of Bandar Tun Lazak. 

But the China company announced that it will pay 50% of $5.28 billion = $2.64 billion to 1GDB, when it should only be paying 40% of $5.28 billion = $2.11 billion.

Is this a genuine mistake or did the incompetent donkeys at 1GDB screw up yet again?

Another possibility is that one of the local JV shareholders is getting a free ride (the Mister 10% Ali Baba fraudtrepreneur commission agent) paid for by China!! This may have been meant to be kept hush, hush, but they did not anticipate that China would have to make a public announcement to the Hong Kong Stock Exchange!! 

What else is 1GDB hiding by not disclosing the full S&P to the public?

It is not at all odd that everything about serially lying PM Grossnajib, 1GDB, its Chairman, Board of Directors and Johnny-come-lately balls carrying CEO Arul Kaunda Kundi, stinks to high heaven.

When a business is conceived right from the very beginning with the intent of defrauding the Rakyat, by a greedy, grasping serially lying prime minister, Grossmajib who is also implicated in murder (s), then not only will nothing good arise from it, but it can only lead to disaster and ruination of the country.

And who are the biggest victims in this global scam?

None other than the Malays who misguidedly voted for him and BUMNO/SCUMNO, and who continue to support a crook, thief, and defrauder who has misappropriated billions of  dollars of our money through corruption, CBT, money-laundering, looting and plundering.

PM Grossmajib has become fabulously rich with no known ownership of legally acquired equivalent assets or income.

PM Grossmajib has committed treason and must be forcibly removed from office immediately!

Donplaypuks® with global-scale screw ups, serially lying and incompetent PM Grossmajib, 1GDB Chairman, Directors and CEO Arul Kaunda Kundi!

1 comment:

Anonymous said...

You have said it all - I am proud of you.

If only there are more like you in Malaysia. Sigh...