Equanimity likely to be sold at below half price

The ongoing saga surrounding the sale of Jho Low’s seized superyacht Equanimity is likely to end with the vessel being sold at a massive discount.

Sources told The Star Online that the intention was to dispose of Equanimity for no less than US$130 million (RM531 million), which is already about half its original cost, but the government is likely to settle for around US$100 million (RM408 million).

The sale was expected to be completed by March 31 but the government has not found a buyer, and there is some urgency because of the yacht’s high maintenance costs.

Equanimity is currently docked at the Royal Malaysian Navy’s Region 3 headquarters in Langkawi. It cost an estimated RM11 million to upkeep the yacht for the last five months of 2018.

“It is a buyer’s market. Potential buyers are not in a hurry to grab the vessel and are looking for a good buy.

“They know the government wants to dispose of the vessel as soon as possible due to its high maintenance cost,” said the source.

It is believed that many of the bids for the superyacht thus far have been between US$80 million and US$100 million. Although there are potential buyers from the Middle East, Russia and Asia, none seem willing to go beyond that range.

“The government needs to return to court to cancel the reserve price and get a fresh order – a private treaty – to allow direct negotiation with a potential buyer.

“Without this order, the government cannot proceed with the sale,” said the source.

The government had originally set US$130 million as the minimum sale price for the vessel, which is believed to have been built for US$250 million.

It is alleged that Equanimity was bought by Malaysian businessman Jho Low, whose real name is Low Taek Jho, using money stolen from scandal-tainted 1Malaysia Development Bhd (1MDB).

The 91.5 metre superyacht was seized in Bali in February last year in an asset recovery operation by the US Department of Justice (DOJ) as part of its probe into stolen 1MDB funds.

Indonesian authorities handed the vessel to the Malaysian government last August. - Mkini