KUALA LUMPUR: Two potential suitors of Maju Expressway (MEX) 1, which is being put up for sale by concessionaire Maju Holdings Sdn Bhd, are keeping mum on their interest to take over the 26km highway.
Sources said Widad Business Group Sdn Bhd and Prolintas Expressway Sdn Bhd could end up paying RM2 billion for MEX 1.
Spokespersons for Widad Business Group and Prolintas were silent when asked whether they were bidding for MEX 1.
"We regret to inform you that Widad has declined to comment on this matter at present time," a Widad Business Group spokesperson told the New Straits Times.
Prolintas spokesperson said it was not aware of the matter.
Bloomberg, quoting sources, named Widad Business Group and Prolintas, together with Naza Group, as parties interested to bid for MEX 1.
"They are currently looking at a value of up to RM2 billion for MEX 1, but talks are still ongoing. All parties are believed to have submitted non-binding offers, but nothing has been finalised," the report quoted a source from the banking industry as saying.
Maju Expressway Sdn Bhd (MESB), the single-purpose company that holds the concession of MEX 1, is reportedly seeking funding to raise additional funding to complete construction of MEX II, which is currently 84 per cent completed and is "unable to progress with the construction".
MESB is a subsidiary of MEX I Capital Bhd, which in turn is wholly-owned by Maju Holdings.
Malaysian Rating Corp Bhd recently downgraded MEX II Sdn Bhd's RM1.3 billion sukuk Murabahah Programme rating to BBB-IS from A-IS, and its RM150 million Junior Bonds to BB from BBB.
The downgrade was due to insufficient progress with respect to MEX II's 16.8km Lebuhraya Putrajaya-KLIA highway project (MEX Extension) since the ratings were downgraded in October 2019.
In October last year, Widad Business Group offered to buy either a 51 per cent stake or all 100 per cent stake in PLUS Malaysia Bhd, which is now held by Khazanah Nasional Bhd and the Employees Provident Fund (EPF).
The company had made two offer options - acquiring 51 per cent of Khazanah's interests at RM1.5 billion cash, with the remaining interest held by the EPF, or acquiring 100 per cent of Khazanah and EPF's interests at RM3 billion.
Prolintas, on the other hand, owns Ampang-Kuala Lumpur Elevated Highway, Guthrie Corridor Expressway, Kemuning-Shah Alam Expressway and Kajang SILK Highway, among others.
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