What was the actual market value of assets transferred to UJSB in 2018?

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The Actual Market Value of Assets Transferred to UJSB Was Significantly Lower Than the Purchase Price

In 2018, Urusharta Jamaah Sdn Bhd (UJSB) acquired underperforming and non-core assets from Lembaga Tabung Haji (TH) for approximately RM19.9 billion, comprising RM19.6 billion in sukuk and RM300 million in cash. Subsequent valuations indicated that these transferred assets were worth closer to RM9.7 billion to RM10 billion. This substantial difference between the purchase price and the later valuation represented the cost of maintaining TH's solvency on paper at the time of the accounting issue's discovery.
UJSB Acquired Assets at a Premium in 2018

The transfer of assets to UJSB in 2018 was part of a restructuring exercise to address a deficit in TH's financial standing. UJSB, established as a special purpose vehicle under the Minister of Finance (Incorporated), absorbed these assets with the mandate to rehabilitate them over a ten-year period. The assets were acquired by UJSB for a sum that was significantly higher than their assessed worth shortly thereafter, suggesting they were already overvalued when originally acquired by TH's management in the years preceding 2018.
Subsequent Valuations Revealed a Substantial Discrepancy

The financial performance of UJSB itself highlights the challenge of the inherited portfolio. As of the end of 2024, UJSB reported total assets of approximately RM11.44 billion against total liabilities of roughly RM23.86 billion, with accumulated losses reaching around RM12.42 billion. This balance sheet reflects an entity still grappling with the financial consequences of the assets it took on, indicating that the rehabilitation of these assets has not yet reached a stage where their value significantly exceeds their liabilities.
Buyback Prices Indicate Original Overvaluation

The recent reacquisition of two assets by TH from UJSB further supports the notion of initial overvaluation. TH bought back land at the Tun Razak Exchange for RM270 million and the UJ Estates plantation for RM695 million. These buyback prices were lower than the values at which they were sold into UJSB in 2018 (RM400 million for the land and RM800 million for the plantation). This trend, even for assets that have since shown recovery, suggests that the remaining assets within UJSB are also likely to have been overvalued at the time of the 2018 transfer.

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What was the actual market value of assets transferred to UJSB in 2018?

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