1MDB announces redemption of RM4b from Cayman

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1mdb_theedgemarkets

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KUALA LUMPUR (Jan 9): Malaysian state investor 1Malaysia Development Bhd (1MDB) has redeemed more than RM4 billion in the Segregated Portfolio Company (SPC) registered in the Cayman Islands, Bernama reported.

There was also a RM435 million dividend from the investment, which will be accounted for in the financial year ending March 31, 2015.

According to Bernama, the 1MDB blog today stated that the chairman of the Board of Directors recently issued a statement confirming that the remainder of the funds in the SPC would be redeemed in the coming months.

The process to do so had already commenced, and an announcement made as soon as this was completed.

1MDB was quoted in the report as saying that third party individuals who were not privy to the decision-making process of the company, and did not have the full facts or understand the context of decisions made internally, continued to make speculative statements.

It cited Tony Pua, the Petaling Jaya Utara Member of Parliament (MP), as having issued a statement recently concerning its last set of submitted financial accounts, and described it as containing disingenuous allegations based on old information that has been in the public domain for months.

These allegations, 1MDB said, are centred around the financial accounts for the year ended March 31, 2014.

It stated that on Aug 1, 2014, the board of directors of 1MDB had authorised the redemption of all investments in the SPC to be received no later than Dec 31, 2014 and amounting to US$2.33 billion (RM7.71 billion at the time the results were submitted).

"Without knowledge of the full facts, the MP has speculated that this note was used to deliberately mislead our auditors and his oft-repeated allegation that 'the funds are tied up in investments of highly questionable value', which if disposed today, would result in massive unbearable losses to the company," 1MDB said in the Bernama report.