Brunsfield? ECM Libra? So what else is new?
This is one of the 'golden hand shake' for the power that’s going off soon after March 09.
The new KLIA-East may sound like a private venture between SD & Air Asia. Well, the corporate guys will put it through “PFI” flavor. This term is overly used to disguise using public money being channeled into private companies supposedly invested for long term public / govt facilities.
One look..and it seems good for the NS state govt and SD, as it should be paid by Air Asia.
Let us look into Air Asia (AA) main shareholders: Tony + Tony&gang company + Kallimullah (hey! he is in here too…!) + EPF!!
Do you remember last week, EPF mentioned having RM 360 bil of fund with only 0.5% invested in property; and willing to increase to 3 to 5% for property investment? Thus, it translates into about RM10 to RM18 bil that could be make available to invest in property venture… if EPF wants to. What is RM1.6bil, as shareholder loan & increasing EPF equity in AA, in return for a portion of an airport with supporting development in the 3,000 acres, which might be valued at potential RM10 bil (asset+cashflow)? Wouldn’t it be good, that if by injecting a bit of the fund into the venture by having more share and return on loan.. it would give EPF a bigger return from the project spin-off value of the RM10 bil? With those smart financial spinners (investment bankers, who else?), the numbers and assumption would look rosy.
