EPF WILL FINANCE OSK’S MELBOURNE DEVELOPMENT WITH AUD 175 MILLION (RM 525 MILLION) IN BORROWED MONEY.AFTER PROVIDING ONG LEONG HUAT & FAMILY AUD 154 MILLION AND A AUD 38.2 MILLION UPFRONT PROFIT
As previously reported”
OSK buys Melbourne property for AUD 145 Million, promises gardens in the sky,and gets EPF to pay AUD 154 Million for 49% in a market that is expected to collapse
The further details of the deal can be found on the OSK website and include this disclosure of a AUD 175 Million loan, which is an for the EPF an exposure over and above the AUD 154 million paid over to OSK:
PJ Development Holdings Berhad (“PJD” or “the Vendor”), a subsidiary of the (OSK) has, on 5 April 2017 entered into a Share Sale Agreement (“SSA”) with Employees Provident Fund Board (“EPF” or “the Purchaser”) for the disposal of 100 ordinary shares (“Sale Shares”) representing 100% equity interest in Yarra Development Holdings (Australia) Sdn Bhd (“Yarra Holdings”), a wholly-owned subsidiary of PJD (“the Disposal”);
Yarra Holdings is the registered and beneficial owner of all the issued and paid up shares in Yarra Australia. The principal activity of Yarra Australia is to engage in investment holding.
Yarra Holdings has applied for a credit facility of up to Australian Dollar One Hundred and Seventy Five Million (AUD175,000,000.00) only (“the Facility”) and CIMB Bank Berhad, OCBC Bank (Malaysia) Berhad and RHB Bank Berhad (collectively referred to as “the Lenders”) have agreed to grant the Facility to Yarra Holdings for the sole purpose of advancing an amount not exceeding Australian Dollar One Hundred and Seventy Five Million (AUD175,000,000.00) only to Yarra Australia to enable Yarra Australia to subscribe for the New Subscription Shares
Further details can be found at link http://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=78776&name=EA_GA_ATTACHMENTS.
Readers can see for themselves the type of deal OSK’s Ong Elong Huat , his OSK and their business partners have struck with the EPF and its member contributors.
WRITER: Ganesh Sahathevan