on 2 Apr 2019
The seized superyacht is sold for US$126 million to the resort operator who also owns a shipyard and offers luxury yacht charters
The Government of Malaysia is pleased to annouce that the superyacht Equanimity is to be sold to Genting Malaysia Bhd, or its special purpose vehicle (SPV) company, for the price of USD 126 million. The Admiralty Court in Kuala Lumpur today approved the offer by Genting to purchase Equanimity on the Sheriff’s Terms and Conditions.
Genting Group, a resort operator, also owns a shipyard that builds superyachts as well as a luxury yacht chartering division.
The USD 126 million purchase price will be paid by Genting, and received by the Court, by the end of April 2019. This will rank as the highest recovery to date for the Government of Malaysia from the 1MDB scandal, happening within a mere eight months.
This USD 126 million is the best offer received since October 2018 when Equanimity was first put up for sale. Many other offers were given in this period, with a few over USD 100 million. However, it was Genting that offered the highest price, that was today approved by Court for acceptance. As the Genting offer was negotiated directly with the Government of Malaysia, no agency commission is payable; resulting in a savings of about USD 4.4 million. In consequence, although the Winterbothams’ market price evaluation of Equanimity at USD 130 million was not reached, the net returns to the Government of Malaysia is as good, if not more, than anticipated.
(Photo: David Churchill)
This judicial sale at USD 126 million records a high-water mark for the Malaysian judicial system in ensuring that market value is secured for a vessel sold through the processes of Court without any discount. Impressively, this was achieved in the sophisticated sale of a very high-end superyacht, where the pool of buyers is extremely small.
The very satisfactory sale price of USD 126 million was accomplished thanks to the Legal Team representing the Government of Malaysia, who beared costs personally to travel to meet potential buyers in Hong Kong and London.
(Photo: David Churchill)
The Navy also afforded prime space in Langkawi for the docking of Equanimity for over five months, free of any charges. The Navy, together with the Malaysian Police, ensured the security and safety of the vessel whilst under arrest, escorting her during sea trials by prospective buyers, which helped in keeping the costs down of maintaining Equanimity under arrest.
For transparency, a further statement will be issued once the purchase price is received, with a breakdown of the expenses incurred, and the net amount to be credited into the newly opened 1MDB asset recovery account.