TABUNG Haji (TH) has started transferring assets from its equities investment portfolio to a special purpose vehicle (SPV), Urusharta Jamaah Sdn Bhd, as part of a restructuring exercise.

Filings with Bursa Malaysia today showed TH had ceased to be a substantial shareholder in several listed companies as a result of the share transfer, including Malakoff Corporation Bhd (500 million shares transferred), UEM Sunrise Bhd (348.87 million shares), IJM Corporation Bhd (227.31 million shares), Hap Seng Plantations Holdings Bhd (66.07 million shares), Dayang Enterprise Holdings Bhd (76.37 million shares), and Pintaras Jaya Bhd (11.35 million shares).

Other companies in which TH has ceased to be a substantial shareholder are Naim Holdings Bhd (24.83 million shares transferred), Integrated Logistics Bhd (20.58 million shares), Eastern & Oriental Bhd (94.25 million shares), Pelikan International Corporation Bhd (157.19 million shares), Icon Offshore Bhd (103.61 million shares), and TH Heavy Engineering Bhd (334.16 million shares).

Earlier this month, the pilgrimage fund said it had identified underperforming assets worth RM19.9 billion to be transferred to an SPV owned by the Finance Ministry to normalise its financial position.

On the identified assets, TH group managing director and chief executive officer Zukri Samat said 80% of the value comprised equities with unrealised losses of more than 20%, while the remaining 20% was in the form of properties and land assets with yields of below 2.5%.

He said TH intended to review its asset allocation to reduce its exposure on equities to 20%.

It was also reported that almost 40% of TH’s assets comprised investments in shares of listed companies which were vulnerable to fluctuations of the financial market.

TH aims to complete its restructuring exercise by the end of this month, whereupon the pilgrimage fund will have a clean balance sheet with assets equal to liabilities, Zukri said, adding that TH had RM57.1 billion of good assets as at December 11.

With a restructured balance sheet, he said, TH would be poised to move forward to generate sustainable profits to distribute hibah (dividends) and would be in full compliance with the Tabung Haji Act 1995. – Bernama, December 28, 2018.