Genting buys yacht for US$126mil
Historic sale of Equanimity marks govt’s highest recovery from 1MDB scandal
KUALA LUMPUR: Genting Malaysia Bhd has confirmed its purchase of the Equanimity for US$126mil (RM514.6mil) with the Attorney General describing the sale as historic and represented the highest recovery so far for the government from the 1Malaysia Development Bhd (1MDB) scandal.
In a filing with Bursa Malaysia, Genting Malaysia said on March 28, it made an offer to the Kuala Lumpur High Court to buy the superyacht together with bunkers, fuel, lubricants and other existing consumables on board under a Judicial Sale process, by way of private direct sale, pursuant to the order made by the court under its Admiralty jurisdiction.
“The Admiralty Court in Kuala Lumpur approved the offer by Genting Malaysia on the sheriff’s terms and conditions. The acquisition will be undertaken by Genting Malaysia’s wholly-owned subsidiary and the completion of the sale is expected to take place by end April 2019,” Genting Malaysia said.
It said that the proposed acquisition would allow Genting Malaysia to differentiate itself from its competitors and provide the group with a unique and competitive edge for its premium customers.
Genting Malaysia said the proposed acquisition was not expected to have a material effect on its consolidated earnings, net assets and gearing for the financial year ending Dec 31, 2019.
In a statement yesterday, Attorney General Tommy Thomas said the US$126mil purchase price would be paid by Genting and received by the court by the end of April.
“This will rank as the highest recovery to date for the government of Malaysia from its 1MDB scandal, within a mere eight months from the commencement of this action,” he said.
Thomas said it received a few other offers above US$100mil (RM408.05mil) but the US$126mil (RM514.14mil) purchase price from Genting was the best offer it had received over five months since the Equanimity was put up for sale.
As the Genting offer was negotiated directly with the government, he said no agency commission was payable and this resulted in a savings of US$4.4mil (RM17.95mil).
“Although the Winterbothams’ market price evaluation of the Equanimity at US$130mil (RM530.46mil) was not reached, the net returns to the government is as good, if not more than envisaged.
“This judicial sale at US$126mil (RM514.14mil), is historic, by any measure.
“It records a high-water mark for our judicial system in ensuring that market value is secured for a vessel sold through the processes of court, without any discount.
“It is even more commendable that this is achieved in a very sophisticated high-end superyacht sale where the pool of buyers is very small,” he said.
Thomas said that a further statement would be issued once the purchase price was received, with a breakdown of the expenses incurred and the net amount to be credited into the newly opened 1MDB asset recovery account.
The government, he said, was appreciative of the offer by Genting.
Equanimity was once owned by fugitive businessman Low Taek Jho or better known as Jho Low.
Bidding for the superyacht which saw interest from the rich and famous in the yachting community closed in November last year.
Equanimity is one of many luxury items seized by the government as part of its probe into money laundering in the 1MDB scandal. The 91.5m-long Equanimity, is known to have a Turkish bath, swimming pool and a helicopter landing pad.
The superyacht is docked in Langkawi.
It was seized off the coast of Bali by Indonesia in February at the request of US authorities as part of a probe into the multi-billion-dollar 1MDB scandal.
Indonesia then handed over the vessel to Malaysia in August last year.
Finance Minister Lim Guan Eng said the Equanimity was sold at the best price so that the government would not have to bear the expensive cost to maintain the luxury vessel.
“Definitely the best price they can offer. We are in support of it because for the last eight months the government has been paying over RM14.2mil
“That is a very big amount. If we can sell it quickly and get the best price possible, at least we don’t have to bear this sum. It’s almost RM2mil a month. So, it’s very taxing.”
On March 28, it was reported that Putrajaya had spent a total of RM11mil on the maintenance of Equanimity and an additional RM3.22mil was budgeted for its upkeep from January to March.
Lim said the government would have to accept the sale price of Equanimity, as this is the best price for the sale of the superyacht.
“I mean, you can never be happy with the price, you always want more-lah. It’s natural.”
“But, if this is the best price we can have based on open tender, I think we have to accept that this is the best price we are going to get.” Watch the video thestartv.com