Kuala Lumpur International Dental Centre (KLIDC) has finally broken its silence over the status of the company which has led to an heated exchange between Penang Chief Minister Lim Guan Eng and federal minister Abdul Rahman Dahlan.

KLIDC, which is central to the debate as it controls the Taman Manggis land purchased from the Penang government for RM11.6 million in 2012, today rebutted claims that the company had been sold to a third party.

Rahman had on Monday revealed a share sale agreement showing that KLIDC was being sold for RM18.6 million to an undisclosed buyer that would also mean an indirect sale of the Taman Manggis land.

The Penang government had consistently stated that the Taman Manggis land will not be resold.

KLIDC's majority shareholder Tang Yong Chew, in an interview with Nanyang Siang Pau , admitted the existence of the share sale agreement but said the deal did not go through.

Tang explained that last year, a US group had expressed interest to invest in the planned medical centre on the Taman Manggis land which led both parties to form a new joint-venture company to seek for bank financing.

"As the financing application required some legal documentation, we signed the share sale agreement, which was revealed recently, leading to claims that KLIDC wanted to sell off the Taman Manggis land for profit," he said.

However, Tang said plans did not proceed smoothly and the joint-venture eventually fizzled out.

He stressed that the Taman Manggis land was still wholly-owned by KLIDC.

Tang added that in the absence of new development or final decision on the plans, KLIDC did not inform the Penang government to avoid confusion.

"The most important thing to note is the conditions set out by the Penang government for the land remain unchanged and KLIDC will strictly abide by them," he said.

Tang said even if the share ownership changed hands, only a medical centre can be built on the Taman Manggis land as per the terms when the land was acquired.

'Not below market'

He also rebutted claims that KLIDC had purchased the Taman Manggis land from the Penang government at below market price.

Tang said before KLIDC bid for the land, it had engaged a valuer to survey the land which estimated its value to be between RM180 psf to RM200 psf.

He said the Penang government had set the price at RM200 psf and KLIDC won the tender by offering a price of RM232 psf.

Asked about his relationship with the Penang chief minister's bungalow seller Phang Li Koon, Tang said she was his former employee and now a business partner.

He added that they have known each other for 20 years.

They run an outsourcing company and Phang is in charge of operations in Penang.

Tang said he never knew the Penang chief minister personally and only met him after KLIDC successfully bid for the Taman Manggis land.

He added that apart from the Taman Manggis land, KLIDC had no other business dealings with the Penang government.

BN had claimed that the Taman Manggis land was sold at below market price in exchange for Phang selling her bungalow, valued at RM4.27 million, to Lim at RM2.8 million.

However, Lim pointed out that the Taman Manggis land was awarded based on an open tender and he was never part of the tender committee.

Although Phang and Tang are business partners, the former do not have any business interest in KLIDC.