MBI sells land to PNSB

SHAH ALAM: Menteri Besar Incorporated (MBI), the parent company of Selangor state subsidiaries, sold two plots of land worth RM438.5 million to Permodalan Negeri Selangor Bhd (PNSB), a state agency, on Tuesday, Nov 30.

A piece of the land, measuring 510.4ha and worth RM333.5 million, is located in Bukit Beruntung while the other land, measuring 528.2ha and valued at RM105 million, is in Bestari Jaya.

Menteri Besar Tan Sri Abdul Khalid Ibrahim, who attended the sale and purchase agreement signing, here, said the land was sold to PNSB at its original price.

He said the MBI obtained the land from Talam Corporation Bhd to settle the corporation's debt to state government's subsidiary companies worth RM392 million.

Abdul Khalid said the total assets obtained from Talam, including the two plots of land sold to PNSB, for debt clearing purposes was estimated at RM422 million after deducting Talam's RM266 million debt with financial institutions.

He said the PNSB received offers from several companies to jointly develop the land in Bukit Beruntung and had been ordered to form a team, which would include the Hulu Selangor District Council, to plan mixed development projects in the area.

Abdul Khalid said Talam's method of settling its debt was not a bail out because the debt was recorded in the state's accounts, whereby Talam had agreed to hand over some of its assets as payment. — Bernama