Transaction provides unique opportunity for co-investors to invest in high quality and high specification industrial real asset in Malaysia
KUALA LUMPUR, 30 October 2023: Permodalan Nasional Berhad (PNB), the Employees Provident Fund (EPF), and Kumpulan Wang Persaraan (Diperbadankan) [KWAP] (collectively known as co-investors) have signed a sale and leaseback transaction agreement valued at RM2 billion with OSRAM Opto Semiconductors Sdn Bhd, a wholly-owned domestic subsidiary of Austria-based, ams OSRAM AG, a leader in intelligent sensors and emitters.
The sale and leaseback transaction is expected to conclude in December 2023. Co-investors will each own 33.3% equally.
The transaction offers a unique opportunity for PNB, EPF, and KWAP to invest in a high quality and high specification industrial real asset in Malaysia which provides competitive returns. The investment is for a 10-year period with a clear exit strategy.
In addition, the investment catalyses Foreign Direct Investment (FDI) by enabling our partner to deploy more capital in Malaysia. This aligns with one of the goals of the Madani Economy Framework, which aims to establish Malaysia as a leading Asian economy and enhances our global competitiveness, resulting in high impact growth investments for the country.
Furthermore, it is in line with Malaysia’s New Industrial Master Plan 2030 (NIMP30), in its objective of advancing economic complexity. The injection of capital to the Electrical and Electronics (E&E) sector enables ams OSRAM, a global leader, to establish the world’s first fully automated 8-inch LED and micro LED manufacturing facility.
The facility will foster the development of an ecosystem to support high value-added activities such as semiconductor fabrication. It underscores Malaysia’s vision of becoming a prominent high-tech manufacturing hub that would rejuvenate the ‘Made in Malaysia’ brand. The products manufactured in ams OSRAM’s Kulim II will contribute to the country’s goal of expanding high-tech manufacturing exports and establishing a global presence, which solidifies additional employment opportunities in the country in the field of science and high-tech semiconductors.
About Permodalan Nasional Berhad (PNB)
Permodalan Nasional Berhad (PNB) is one of the largest fund management companies in Malaysia with assets under management (AUM) exceeding RM300 billion. PNB’s portfolio covers strategic investments in Malaysia’s leading corporates, global equities, private investments and real estate. For more information, please visit www.pnb.com.my.
About Employees Provident Fund (EPF)
Established in 1951, the Employees Provident Fund (EPF) is the largest institutional fund manager in Malaysia under the purview of the Ministry of Finance with more than RM1 trillion of assets under management. Its investment is guided by a robust and professional governance framework when making investment decisions. As one of the oldest retirement funds in the world, the EPF has expanded its role to encompass the creation of a comprehensive social wellbeing ecosystem. Today, the EPF remains steadfast in its commitment to members through consistent efforts to update and improve itself, in order to build the foundation for sustainable, holistic and equitable well-being for all Malaysians.
About Kumpulan Wang Persaraan (Diperbadankan) [KWAP]
Kumpulan Wang Persaraan (Diperbadankan) [KWAP] or the Retirement Fund (Incorporated) was established on 1st March 2007 under the Retirement Fund Act 2007 (Act 662) replacing the repealed Pensions Trust Fund Act 1991 (Act 454).
KWAP manages contributions from the federal government and relevant agencies made into the Retirement Fund [Fund] to obtain optimum returns on its investments through sound management and investment of the Fund in equity, fixed-income securities, money market instruments, and other forms of investments as permitted under the Retirement Fund Act 2007 (Act 662). The Fund shall be applied towards assisting the Federal Government in financing its pension duties. In 2015, KWAP was officially appointed as an agent of the Federal Government for the purpose of pension payment, gratuity, or other benefits granted under any written law from the Consolidated Fund as agreed between the Federal Government and KWAP.
Visit www.kwap.gov.my for more information.