Equanimity sale: Not plain sailing
No buyers yet, so govt to offer hefty discounts
There are potential buyers for the superyacht seized from Jho Low but apparently, the price is not right. The March 31 target for completing the sale has passed and there is no deal yet. The government may now scrap the minimum price of US$130mil and go as low as US$100mil.
PETALING JAYA: It was allegedly bought with stolen money and soon, it may be a steal.
The sale of Jho Low’s seized superyacht Equanimity was expected to be completed by March 31 but the government has yet to secure a buyer.
It now looks likely that the vessel will be sold at a hefty discount.
The plan was to dispose of Equanimity for no less than US$130mil, which is already about half its original cost, but a source said the government may next cut the price to as low as US$100mil.
There is growing urgency to seal a deal because the monthly upkeep of the vessel is “bleeding” the taxpayers.
“It is a buyer’s market. Potential buyers are not in a hurry to grab the vessel and are looking for a good buy.
“They know the government wants to dispose of the vessel as soon as possible due to its high maintenance cost,” said the source.
He added that many of those who had put in bids for the superyacht were only willing to fork out between US$80mil and US$100mil.
In the last eight months, the government has spent RM14.5mil to maintain Equanimity, which is currently docked at the Royal Malaysian Navy’s Region 3 headquarters in Langkawi.
The vessel was moved to Langkawi last November after the Admiralty Court approved the terms and conditions for its bidding process.
“The government needs to return to court to cancel the reserve price and get a fresh order – a private treaty – to allow direct negotiation with a potential buyer.
“Without this order, the government cannot proceed with the sale,” said the source.
Earlier, the government had set US$130mil (RM543mil) as the minimum sale price for the auction. It has been reported that Equanimity was built for US$250mil (RM1.42bil).
The source said although there are parties from the Middle East, Russia and Asia who are interested in the vessel, these potential buyers are reluctant to pay the asking price.
It is alleged that Equanimity was bought by Malaysian businessman Jho Low, whose real name is Low Taek Jho, using money stolen from scandal-tainted 1Malaysia Development Bhd.
The 91.5m superyacht was seized in Bali in February last year in an asset recovery operation by the US Department of Justice as part of its probe into stolen 1MDB funds. Indonesian authorities handed the vessel to the Malaysian government last August.