KUALA LUMPUR: Lembaga Tabung Haji (TH) is in the position to pay dividend to its depositors for 2018, its top executive said.
This is possible after TH restored its financial account following the transfers of stakes in 106 underperfoming listed copmpanies as well as other assets including land to special purpose vehicle (SPV) Urusharta Jamaah Sdn Bhd.
Group managing director and chief executive officer Datuk Seri Zukri Samat, however, said its 9.3 million depositors should not expect a high dividend as the pilgrim fund was in the midst of turning around.
“We have restored the balance sheet of TH, putting us in a position to pay hibah (dividend) for 2018.
“The amount will depend on our financial performance. Do not expect too much,” he told reporters at a media briefing on the progress of TH’s turnaround plan here today.
In 2017, TH declared a dividend of 4.5 per cent and a bonus dividend of 1.75 per cent.
He said TH had completed the transfers of its stakes in the 106 listed companies to the SPV on December 31 last year.
Zukri said the 106 underperforming listed assets were its non-controlling blocks and mainly from plantation, oil and gas, property and construction sectors.
He said the highest unrealised loss from the assets is 96.5 per cent, with its top 10 underperforming stocks accounting for almost RM4.6 billion of unrealised loss.
Following its turnaround plan, Zukri said TH would be in a much better position in 2019.
He said in order to enhance transparency in the future and restore depositors and investors’ confidence, the group would be providing quarterly updates on its financial performance.
“This is so that our depositors can track how we are doing financially,” he said.
Under the deal with Urusharta Jamaah, Zukri said RM19.9 billion worth of assets were identified to be transferred to the SPV. Eighty per cent were in the form of equities with impairments exceeding 20 per cent and the balance, in properties with yields of less than two per cent.
In exchange for the assets, the SPV will issue a RM10 billion seven-year sukuk and RM9.9 billion in Islamic redeemable convertible preference shares.
He was reported as saying that TH had planned to reduce its equities exposure to 20 per cent from 40 per cent previously.
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.
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