TH completes transfer of underperforming equities to SPV

TH group managing director and CEO Datuk Seri Zukri Samat(pic) has said that properties with yields of less than 2% and equities with impairments exceeding 20% would be acquired by the SPV at book value

KUALA LUMPUR: Lembaga Tabung Haji (TH) has completed the transfer of all underperforming equities, as at Dec 30, 2018, to special-purpose vehicle (SPV), Urusharta Jamaah Sdn Bhd, says group managing director and chief executive officer Datuk Seri Zukri Samat.

He said a press conference would be held next week to announce the latest development.

"There will be press conference next week. As far as TH is concerned, we have already transferred the shares," he told Bernama when asked about the transfer of its underperforming assets to the SPV which is part of the pilgrim fund's turnaround plan.

However, he did not respond to a whatsapp query when asked if the transfer also included its property assets.

Based on observation, at least 49 public-listed companies had informed Bursa Malaysia Securities Bhd via a  “Notice of Person Ceasing to be a Substantial Shareholder”, starting from Dec 28, 2018 up to Jan 9, 2019, following the takeover of shares by Urusharta Jamaah.

During a media briefing held on Dec 11, 2018, Zukri said TH had met the target to complete the entire exercise by end-Dec 2018, aimed at having a clean balance sheet with assets equalling liabilities and enabling the pilgrim fund to pay an annual dividend for the 2018 financial year.

Overall, RM19.9 billion worth of assets have been identified to be transferred to the SPV, of which 80 per cent were in the form of equities with impairments exceeding 20 per cent and the balance, in properties with yields of less than two per cent.

In exchange for the assets, the SPV will issue a RM10 billion seven-year Sukuk and RM9.9 billion in Islamic redeemable convertible preference shares.

TH, he said, wanted to reduce its equities exposure to 20 per cent from 40 per cent, previously.

Among the companies involved in the transfer of shares were UEM Sunrise Bhd, Boustead Heavy Industries Corporation Bhd, Alam Maritim Resources Bhd, Mah Sing Group Bhd, FGV Holdings Bhd, Brahim's Holdings Bhd, Puncak Niaga Holdings Bhd, Parkson Holdings Bhd, White Horse Bhd, MCT Bhd MMC Corporation Bhd, Suria Capital Holdings Bhd and Malaysia Marine and  Heavy Engineering Holdings Bhd.

As of now, TH is still holding substantial shares in key counters such as Tenaga Nasional Bhd, Ranhill Holdings Bhd, Maxis Bhd and BIMB Holdings Bhd.

As previously announced, the transfer of the underperformed assets to the SPV, which is under the purview of the Ministry of Finance, is also to normalise TH's financial recovery.

TH reported liabilities of RM74.4 billion against total assets of RM70.3 billion, resulting in a total deficit of RM4.1 billion, as at Dec 31, 2017. - Bernama
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