Transfer of underperforming equities to Urusharta Jamaah completed

KUALA LUMPUR: Tabung Haji (TH) has completed the transfer of its underperforming equities, up to December 30 last year, to special-purpose vehicle (SPV) Urusharta Jamaah Sdn Bhd, said group managing director and chief executive officer Datuk Seri Zukri Samat.

He said TH would announce the latest development next week.

“As far as TH is concerned, we have transferred the shares,” he said when asked about the transfer of the underperforming assets as part of the pilgrim fund’s turnaround plan.

Zukri did not respond to a query on whether the transfer included its properties.

At least 49 public-listed companies had informed Bursa Malaysia via a “Notice of Person Ceasing to be a Substantial Shareholder” following the takeover of their shares by Urusharta Jamaah.

At a briefing on December 11 last year, Zukri said TH had met the target of the exercise aimed at having a clean balance sheet.

Overall, RM19.9 billion were transferred to the SPV, of which 80 per cent were equities with impairments exceeding 20 per cent and the balance were properties with yields of less than two per cent.

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

Zukri said TH wanted to reduce its equity exposure to 20 per cent from 40 per cent currently.

Among the companies involved in the transfer of shares were UEM Sunrise Bhd, Boustead Heavy Industries Corp 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 Corp Bhd, Suria Capital Holdings Bhd and Malaysia Marine & Heavy Engineering Holdings Bhd.

TH still holds substantial shares in key counters such as Tenaga Nasional Bhd, Ranhill Holdings Bhd, Maxis Bhd and BIMB Holdings Bhd.

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