GENTING TO BUY ‘EQUANIMITY’ FOR RM514M
Company made an offer to Kuala Lumpur High Court under judicial sale process
THE Equanimity superyacht will be sold to Genting Malaysia Bhd or its special purpose vehicle company at the price of US$126 million (RM514.14 million), according to a statement by Attorney-General Tommy Thomas.
Bernama reported that the Admiralty Court in Kuala Lumpur yesterday approved, for acceptance, the offer by Genting to purchase the Equanimity on the Sheriff ’s Terms and Conditions.
The US$126 million purchaseprice will be paid by Genting, and received by the court, by end of this month.
“This will rank as the highest recovery to date for the government of Malaysia from the 1Malaysia Development Bhd (1MDB) scandal, within mere eight months from the commencement of this action.
“This US$126 million is the best offer received over the five months, from October 2018, when the Equanimity was first put up for sale.
“Many offers were received in this period, and a few were over US$100 million. It was Genting, however, that offered the highest price, that was today (yesterday) approved by the court for acceptance,” the statement said.
As the Genting offer was negotiated directly with the government, no agency commission was payable, resulting in a savings of US$4.4 million, it said.
Although the Winterbothams’ market price evaluation of the Equanimity at US$130 million was not reached, the net return to the government was as good, if not more, than envisaged, it said.
“This judicial sale at US$126 million 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.”
The statement also said the legal team representing the government acted beyond the call of duty, travelling to meet potential buyers in Hong Kong and London, bearing travel costs, to ensure the widest possible outreach and a better understanding of the circumstances of the sale.
“The navy, together with the police, ensured the security and safety of the vessel while under arrest, even carefully escorting her during sea trials by prospective buyers.”
It said such cooperation from agencies helped lower the costs of maintaining the Equanimity.
For transparency, it said, 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 of Malaysia is appreciative of the offer by Genting. That the Equanimity is purchased at the market value of US$126 million by the Genting Group, which owns a shipyard that builds superyachts and operates a luxury yacht chartering division, is significant.”
Genting is buying the Equanimity together with bunkers, fuel, lubricants and other consumables on board.
In a filing to Bursa Malaysia, the company said on March 26, it made an offer to the Kuala Lumpur High Court to purchase the superyacht under a judicial sale process, by way of private direct sale, pursuant to the Order made by the Kuala Lumpur High Court under its Admiralty jurisdiction.
The acquisition would allow it to differentiate itself from its competitors and provide the company with a unique and competitive edge for its premium customers business, it said.
Meanwhile, fugitive businessman Low Taek Jho, also known as Jho Low, in a statement, denounced the superyacht’s “bargain-basement” sale price and blamed Putrajaya for it.
Crying foul over the way the superyacht was seized, docked and maintained, he said the government had prepared to trash the value of the Equanimity in a misguided attack on their political opponents.
It began with a statement that the Equanimity was owned by Equanimity (Cayman) Ltd and that Low was “drawn into the media coverage” by issuing the statement following the superyacht’s purported mishandling.
The United States court documents claimed that Low bought the luxury vessel for US$250 million using money allegedly siphoned from 1MDB.