IPO of 1MDB’s Edra Energy crucial, says Wahid
Dont Just Talk: Minister in the Prime Minister's Department Abdul Wahid Omar, the debt level of 1Malaysia Development Berhad (1MDB) as at March 31, 2014 stands at RM42 billion.
Will the IPO (initial public offering) of 1MDB’s subsidiary Edra Energy be sufficient to reduce the gearing of the troubled government-owned investment company?
In the first place, how did 1MDB debt reach RM42 billion within five years of the company's inception. Wasn't there any control on what 1MDB is spending on or was it just allowing the monkeys to run amok with its funds?
Can you, Abdul Wahid, as minister in the PM’s Department, assure small-time/retirees investors that 1MDB’s IPO will not end up like the Felda Global Venture’s (FGV) IPO, which when launched was at RM4.50 per share, but its latest market price is RM2.10, resulting in investors losing over 50 percent of their money.
Each time when we listen to Umno Baru's ministers like you talking, we ended up poorer financially, unlike the ruling politicians and their wives who can afford to wear luxury watches .
James TCLow: Isn't 1MDB supposed to be profitable? Where are all the profits?
The 'gains' that 1MDB claimed to have made were from revaluation of its properties which in the first place were acquired from the government for a little more than a song.
The reasons for floating Edra Energy are pathetic. Firstly, it was meant to pay off debts (not to value add).
Secondly, if the ownership of 1MDB falls below 50 percent of Edra Energy (that means no more a subsidiary of 1MDB) after the exercise, there will be no consolidation of Edra's accounts into that of 1MDB.
This is, in effect, selling off its debts to those who are gullible enough to go for the IPO of Edra. So, is this the IPO for suckers?
Patriot1: IPOs are normally for business expansion of financially viable companies or at least those with good financial records.
In this particular case, the IPO is used to refinance debts of a company which does not even have proper financial reporting.
Who are the takers? KWSP (Employees Provident Fund, EPF), KWAP (Kumpulan Wang Persaraan), Tabung Haji, etc?
How much more public money be injected to try to salvage a company of questionable viability?
Mushiro: Tall stories from Wahid. He failed to mention that 1MDB had bought those assets including IPPs (independent power producers) at over-inflated prices, thereby making it unable to generate sufficient funds to make 1MDB sustainable.
Now Wahid is looking for suckers to buy 1MDB's Edra Energy. Probably EPF, LUTH (Lembaga Urusan Tabung Haji), KWAP, LTAT (Lembaga Tabung Angkatan Tentera) will again be forced to buy the shares.
Abasir: "This is something the 1MDB board and management have realised," said Wahid on the burden of servicing 1MDB’s debts and its inability to generate sufficient cash flow to meet its debt repayments.
And they have realised this only after running up a debt of RM42 billion!
Why I believe Najib will eventually step down
Chin2Lun: It’s too naive to think PM Najib Razak will go willingly. People who have woven a web of deceit never untangle themselves unless forced to.
How true the saying: “If you want to know a person's true character, give him power and influence.” Najib's character has been laid bare for all to see.
The Analyser: My guess is that Najib will be PM for at least another 10 years, or until the opposition gets its act together well enough to offer itself as an effective alternative, which I might add is nowhere in sight.
Anonymous #20513663: A wise man said a few years before GE13: We must be prepared for two things which will happen in the next few years. First, Muhyiddin Yassin as PM. Second, a change of government.
Let's hope all this happens without violence. Desperate people who think they may be in prison after the skeletons are out of the closet may do many things we cannot even imagine.
The question is what are we doing to prevent violence and bloodshed in the event of a scorched-earth policy?
Monty: Despite all the promises Najib made before the elections to appease voters, he only managed to obtain 47 percent of the popular votes. And there are suspicions that BN, along with the Election Commission (EC), tinkered with some of the votes.
Now with Sabah and Sarawak upset with some of BN's policies, Najib cannot be sure of the same support. TDM (Dr Mahathir Mohamad) was not kidding, the BN could fall. Stephen Ng’s analysis is on the money.
Disappointed!: Najib seems to be a very urbane gentleman but he has over the years shown himself to be a spineless and untrustworthy person.
How can the nation's future be secured if he remains in his position? He is such a huge disappointment.
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