What is the value of non-performing assets transferred from LTH?

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Value of Non-Performing Assets Transferred from LTH

Urusharta Jamaah Sdn Bhd (UJSB) announced that the value of non-performing assets transferred from Lembaga Tabung Haji (LTH) was RM9.63 billion. This transfer was a crucial component of a larger rescue and restructuring plan aimed at restoring LTH's financial health. As part of this initiative, the government is set to bear RM10.3 billion in premiums to facilitate this restoration.
Asset Transfer Details

The transfer of these non-performing assets was completed in December of the previous year by UJSB, a wholly-owned entity under the Ministry of Finance. The transaction involved LTH transferring assets to UJSB in exchange for a total consideration of RM19.90 billion. This amount comprised RM19.60 billion in Sukuk and RM300 million in cash.
Government's Financial Commitment

The RM10.3 billion premium represents the difference between the RM19.90 billion consideration paid for the assets and their market value of RM9.63 billion. This financial burden is being absorbed by the government to ensure LTH's financial stability. UJSB has indicated that if the value of these transferred assets were to depreciate further, the government's financial exposure would exceed the initial RM10.3 billion.
Composition and Specific Property Transaction

The non-performing assets transferred encompass a diverse portfolio, including listed equity holdings, properties, and a single unlisted plantation asset. Among the property assets is a 0.63-hectare parcel of land located at the Tun Razak Exchange (TRX). This specific plot was initially purchased by LTH for RM188.5 million, equating to RM2,760 per square foot. UJSB subsequently acquired this TRX land from LTH for RM400 million, or RM5,856 per square foot, representing a significant premium of 112.2% over LTH's purchase price.
Impairment Charges and UJSB's Mandate

A valuation conducted in March 2019 placed the market value of the TRX land at RM205 million, highlighting a substantial difference from the price UJSB paid. This particular transaction is projected to result in an impairment charge of RM195 million for UJSB. Overall, UJSB anticipates incurring impairment charges exceeding RM10 billion for all the assets acquired from LTH. The mandate of UJSB includes the rehabilitation and restructuring of these assets, maximizing their recovery value, and timely redemption of monetary instruments.

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What is the value of non-performing assets transferred from LTH?

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