PDC can’t dictate terms on UDA’s offer: Lim

How has your previous employment experience aided your current position? I’ve worked in different companies, industries and jobs, from secretarial, sales (tied agency) and to where I am today. It (changing jobs) used to worry my dad but I find it useful. I’m able to understand the operational, sales and marketing and financial planning aspects of each industry. All these have helped me when I took office here.

What have the highlights and challenges been during your tenure at FPAM? Highlights: Cooperative and committed members from GEORGE TOWN: The Penang Development Corporation (PDC), the state development agency, asserted that it was UDA Holdings Bhd (UDA) that brought in Q Islands Development Sdn Bhd (Q Island) to pursue a buyout offer on PDC’s stake in Tropical Island Resort Sdn Bhd (TIRSB) for RM156 million.

Penang Chief Minister Lim Guan Eng said as UDA was the effective owner of TIRSB, with 51% majority control, PDC could not do anything without UDA’s consent.

“Unlike PDC, UDA can sell its shares without PDC’s consent. It is ridiculous for BN (Barisan Nasional) and Gerakan to claim that PDC can dictate terms to UDA with only 49% control,” Lim, who is also PDC chairman, said in a statement, here yesterday.

On Saturday, Penang Gerakan questioned the Penang government’s

What advice can you offer to entrepreneurs/youths who want to start their career/own business? There are no shortcuts and free lunches. You have to put in effort and have patience. Things will come but sometimes decision to sell PDC’s 49% shares in TIRSB to Q Island, a subsidiary of Ideal Property Development Sdn Bhd (Ideal).

State Gerakan chairman Teng Chang Yeow said allegations that the PDC had accepted UDA’s offer to sell its stake in TIRSB to Ideal were not true.

PDC, in a statement issued on Friday, said the state development agency had accepted an offer by UDA to sell its stake in TIRSB to Ideal for RM156 million.

PDC general manager Datuk Rosli Jaafar said UDA had brought in Ideal to jointly develop their project and also buy out PDC’s 49% stake in accordance with PDC’s conditions.

TIRSB, a joint venture between UDA and PDC, which holds 51% and 49% stake, respectively, was appointed by Bestari Hospitality Management to operate the resort in Pulau Jerejak in 2004.

Last Thursday, Penang Gerakan questioned the state government’s future development on Pulau Jerejak.

The chief minister said TIRSB had incurred losses of RM40 million as at end of 2015, and was no longer financially viable and, therefore, PDC agreed to the sale of 49% stake in TIRSB.

Lim said the state government took eight years to determine measures to protect the rights of Penang residents over Pulau Jerejak before finally securing the transaction that was fair and favourable.

With the deal, he said, the state government would recoup RM4.4 million in loans and RM15.44 million investment by selling its stake for RM156 million.

“We also disposed of our 49% stake in a loss-making company, TIRSB, with RM40 million losses, to secure a profit of RM140.6 million that is nearly 10 times over the initial investment,” he added. – Bernama