PNB, EPF, KWAP sign RM2bil leaseback deal with ams Osram

KUALA LUMPUR: Permodalan Nasional Bhd (PNB), the Employees Provident Fund (EPF) and Retirement Fund (Incorporated) (KWAP) have signed a sale and leaseback transaction agreement valued at RM2 billion with Osram Opto Semiconductors Sdn Bhd for its manufacturing facility in Kulim Hi-tech Park, Kedah.

Osram Opto Semiconductors is a wholly owned domestic subsidiary of Austria-based ams Osram AG, a leader in intelligent sensors and emitters.

In a joint statement today, the three co-investors said the sale and leaseback transaction is expected to conclude in December 2023, and the co-investors will each own 33.3 per cent equally.

They said the transaction offered 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, and the investment is for a 10-year period with a clear exit strategy.

“In addition, the investment catalyses foreign direct investment 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 enhance 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 (NIMP 2030), in its objective of advancing economic complexity,” the joint statement said.

The co-investors said the injection of capital into the electrical and electronics (E&E) sector would enable ams Osram to establish the world’s first fully automated 8-inch LED and micro LED manufacturing facility.

They said 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 will 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,” they added. – BK