Mahathir son sells shipping units to rescue cash-strapped company

MALAYSIAN Prime Minister Dr Mahathir Mohamad's eldest son Mirzan has agreed to sell off his entire Hong Kong and Malaysian shipping operations and two liquefied natural gas (LNG) companies to help bail out his cash-strapped listed transport group, Konsortium Perkapalan.

The buyer is state oil corporation Petroliam Nasional (Petronas), and not games group Genting run by Lim Goh Tong, as had been widely expected.

The sale includes Hong Kong-based Pacific Basin Bulk Shipping, which Mr Mirzan's Konsortium bought for US$230 million in 1996 as part of an aggressive regional expansion campaign.

Konsortium, 51 per cent owned by Mr Mirzan, has since seen its market value almost wiped out during Malaysia's currency and stock market collapse and is said to urgently need group debt restructuring.

Petronas chairman Mohd Hassan Marican said the purchase would be made through the group's own listed shipping company Malaysia International Shipping Corp (MISC), but declined to name the proposed price.

As Petronas comes directly under his father's office, Mr Mirzan said a 'reputable' independent valuer would be appointed to assess the value of the net tangible assets of the companies to be acquired before deciding on a final price.

Mr Hassan tried to brush off the widespread public impression that the deal was a bailout.