Parliament today approved a motion by the government, through the Minister of Finance (Incorporated) (MoF Inc), to convert the remaining government loan in UDA Holdings Bhd (UDA) into equity investment (share capital).
The motion was tabled by Deputy Finance Minister I Datuk Seri Ahmad Maslan and passed without debate. Ahmad said the motion involved the remaining government loan amounting to RM165.28 million to be converted into ordinary shares of RM1 per share unit in UDA, a wholly-owned subsidiary of MoF Inc.
“The purpose of this debt-to-equity swap is to reduce the financial burden of UDA since the company’s financial resources are limited via the existing funds allocated for its operating expenses and for implementing development projects,” he said.
