| Valuecap Shareholders Agree To Refinance RM5.1 Billion Loan, Says Nor Mohamed |
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KUALA LUMPUR, Nov 11 (Bernama) -- Shareholders of Valuecap Sdn Bhd have agreed to refinance the RM5.1 billion loan previously extended to the government investment agency, the Dewan Rakyat was told Tuesday.
Second Finance Minister Tan Sri Nor Mohamed Yakcop said the loan is due for full settlement in February next year.
Valuecap had settled the loan interest within the specified period and at the same time paid dividends to its shareholders, he said when winding up the debate on Budget 2009 at committee stage.
Set up in 2003, Valuecap, jointly owned by Khazanah Nasional Bhd, Permodalan Nasional Bhd (PNB) and Employees Provident Fund (EPF), is a fund manager set up to invest especially in the Malaysian equity market.
On the RM5 billion borrowed from EPF and pumped into Valuecap to buy up undervalued stocks, Nor Mohamed said the loan would not pose any risk to EPF as it was 100 per cent guaranteed by the federal government.
Furthermore, EPF did not have any equity in Valuecap, he said.
Nor Mohamed said Valuecap would use the extra funds to invest in low price company shares but with strong fundamentals and potential, adding that this was the right time for Valuecap to make "long-term' investments.
He denied the perception that the latest RM5 billion loan from EPF was to settle the existing loan from shareholders.
Nor Mohamed also said the government might consider establishing "exit strategy" for Valuecap to repay its loan in the absence of a definite deadline on when the agency should settle its repayment.
The suggestion was also proposed by Khairy Jamaluddin (BN-Rembau) who said the absence of an "exit stance" portrayed a picture as though there was a big risk to be borne by the three entities.
Valuecap's RM5 billion capital has swelled to RM8 billion between 2003 and 2008, he said.
Valuecap drew "extraordinary" attention from opposition members during winding up to the point that six members of parliament stood up at one time to seek clarification on the issue.
-- BERNAMA
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