Tabung Haji to sell underperforming assets at RM19.9b book value to SPV

KUALA LUMPUR: Lembaga Tabung Haji will be selling its underperforming assets at the book value of RM19.9 billion to a special purpose vehicle (SPV) under the purview of Ministry of Finance (MoF).

Tabung Haji group managing director and chief executive officer Datuk Seri Zukri Samat said the transfer of the underperforming assets would be completed by December 31 this year.

Zukri stressed that the disposals would not be in cash but in a combination of sukuk issuance and an Islamic Redeemable Convertible Preferance Share (RCPS-i).

“The underperforming assets mostly come from our property and equity segment with the breakdown at 20:80,” he said at a press conference today.

“How we are categorising underperforming is by looking at those property assets with yield less than 2.5 per cent and for equities, are those with 20 per cent or more impairments,” he added.

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