business

Government offers to take over four toll highways for RM6.2bil

KUALA LUMPUR: The government has offered to take over four toll highways in the Klang Valley for a combined RM6.2 billion.

The highways are Leburaya Damansara-Puchong (LDP), Sistem Penyuraian Trafik KL Barat (Sprint), Leburaya Shah Alam (Kesas) and the Stormwater Management and Road Tunnel (Smart).

The concession holders of the four highways are either subsidiaries or associated companies of Gamuda Bhd.

LDP is owned and operated by Lingkaran Trans Kota Holdings Sdn Bhd Bhd (Litrak), a subsidiary of Lingkaran Trans Kota Holdings Bhd (Litrak Holdings).

Litrak Holdings is 44 per cent-owned by Gamuda.

Sprint is owned and operated by Sistem Penyuraian Trafik KL Barat Holdings Sdn Bhd (Sprint Holdings), a 50 per cent associated company of Litrak Holdings.

Kesas is 70 per cent-owned by Gamuda, which also has a 50 per cent stake in Smart.

The takeover offers follow the announcement by the Prime Minister’s Office on February 25 this year on its talks with Gamuda over the potential acquisitions.

The government, as part of its electoral campaign for the 14th General Election last May, had pledged to gradually abolish tolls in stages if it were voted into power.

Gamuda, in its filing to Bursa Malaysia today, said the Minister of Finance Inc (MoF Inc) had offered to buy all in securities including ordinary and preference shares in the four highways in a letter dated June 21.

MoF Inc will pay RM2.3 billion for Litrak, RM900 million for Sprint and a combined RM3 billion for Kesas and Smart. The prices are excluding the concession companies’ debts and liabilites.

The Litrak, Sprint, Kesas and Smart offers were interconditional upon each other unless waived by MOF Inc or SPV in writing, said Gamuda.

The Litrak and Sprint offers would be undertaken by a special purpose company (SPV) fully-owned by MOF Inc to be identified at a later date, it added.

“The Sprint offer and Litrak offer are subject to satisfactory due diligence findings, the approval of the Cabinet of Malaysia, the execution of a definitive agreement in respect of the offers and adherence to the terms of these offers,” Gamuda said.

The offer to each concession holding company remains valid until July 12 unless MOF Inc agreed in writing to extend the period, it added.

Most Popular
Related Article
Says Stories