We know that IPIC is part of the Aabar group which owns a portion of RHB Capital. The Chairman of IPIC is also the owner of Manchester City which as we know can just pay very high price for players to get its club into winning.
What is interesting is the below which was announced in the London Stock Exchange.
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In return (interestingly), as mentioned by 30 June 2016 (a year from now), IPIC is to receive transfer of assets amounting to the total of USD1 billion + USD3.5 billion and the outstanding debt forgiveness. That would amount to around USD4.8 billion?
What I am interested in is which assets that Aabar or IPIC would be interested in? The power assets? From below, IPIC was formed to invest into energy and related sectors. We know that 1MDB has 3 assets which are valuable - Tun Razak Exchange, Bandar Malaysia and the power assets, Edra Energy. But from the 3, the power assets probably meet the criteria of its investments closer. If that is the case, IPIC may become one of the largest independent power company in Malaysia. But would the power assets be worth RM18 billion? Or could it be any other assets as in the announcement it just merely says assets.
4 comments:
Read this article from The Star:
http://www.thestar.com.my/Business/Business-News/2015/05/29/Ahmad-Husni-IPIC-to-provide-US$1b-to-1MDB/?style=biz
Earlier, IPIC guaranteed US-dollar debt papers of US$3.5bil (RM11.2bil) to facilitate 1MDB’s purchase of the power plants from Tanjong and Genting.
In return for the corporate guarantee from IPIC, 1MDB had given a 10-year option to Aabar Investments PJS to acquire up to a 49% equity interest in the Tanjong and Genting power plants when the energy division goes for listing.
Obviously, the assets that IPIC are interested are the power plants from Tanjong and Genting.
From the article, IPIC has profitted USD1.0B out of thin air when 1MDB is unable to exercise the option of selling 49% of equity interest of the power plants to IPIC.
1USD = RM3.8
That means we have lost RM3.8 Billion just like that.
Read this article from The Star:
http://www.thestar.com.my/Business/Business-News/2015/05/29/Ahmad-Husni-IPIC-to-provide-US$1b-to-1MDB/?style=biz
The money from the US$975mil loan was used by 1MDB to pay Abu Dhabi’s IPIC to terminate an option to subscribe for the future listing of 1MDB’s power asset, Edra Energy.
In return for the corporate guarantee from IPIC, 1MDB had given a 10-year option to Aabar Investments PJS to acquire up to a 49% equity interest in the Tanjong and Genting power plants when the energy division goes for listing.
There is a Chinese saying:
If you don't have a big head don't wear such a big hat.
IPIC is using USD3.5B to buy Malaysian assets worth USD4.5B.
That is a discount of 22.22%.
Now you know why IPIC is so "generous" in helping 1MDB ;)
Point 1: We lost USD1.0B
Point 2: We are transferring national assets from 1MDB to IPIC.
http://www.1mdb.com.my/news-coverage/1mdb-buys-tanjong-energy-from-ananda-krishnan-for-rm85bil-and-plans-to-increase
Tanjong power plant: RM8.5B
http://www.eco-business.com/news/genting-bhd-sells-power-generation-business-to-1mdb-for-rm2-3b/
Genting power plant: RM2.3B
Total: RM10.8B
Exchange in 2012 is about 1USD: RM3.1
Hence, RM10.8B is translated to USD3.5B approximately.
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