KUALA LUMPUR: Ekovest Bhd’s plan to list the Duta-Ulu Kelang Expressway (Duke) is on schedule with the initial public offering (IPO) expected to take place within seven years.
“The IPO plan is ongoing (but) depends on the market (conditions),” Ekovest managing director Datuk Seri Lim Keng Cheng said after the company’s extraordinary general meeting (EGM), here, yesterday.
The listing of the highway is part of the deal when Employees Provident Fund (EPF) bought a 40 per cent equity interest valued at RM1.13 billion in Konsortium Lebuhraya Utara-Timur (KL) Sdn Bhd (Kesturi), a wholly-owned subsidiary of Nuzen Corp Sdn Bhd.
Nuzen Corp, in turn, is the wholly owned subsidiary of Ekovest.
Lim said Duke Highway’s exit payment condition was RM149 million, either to be listed (on Bursa Malaysia) or trade sale to a third party to generate a return of at least 11.5 per cent for EPF and Ekovest.
“When that happens, Ekovest will be entitled to take the RM149 million, plus the accrued interest rising from the amount,” he said.
The listing, according to the shareholders’ agreement, is within seven years.
“We are waiting for the toll to be operational to be able to gauge the cash flows and then pick the right timing to go for listing,” Lim added.
While Phase One of Duke (DUKE1) is already operational, Phase Two of uke (DUKE2) is set for completion by mid-year.
“Phase Two is 95 per cent completed and we have started inspection with the highway authority. The (remaining) five per cent is for inspection, testing and commission,” he said.
Lim said the Seri Damansara toll plaza is targeted to be operational in early June, while the Tun Razak link is targeted to open at end-March or early April.
At the EGM, Ekovest received shareholders’ approval for the 40 per cent disposal in its subsidiary Konsortium Lebuhraya Utara-Timur (KL) Sdn Bhd to EPF.
“We are glad that our shareholders share our vision to establish a long-term relationship with EPF as a platform to pursue collaborations on potential investments in the future,” said Lim.
Shareholders also approved the share split that involves the subdivision of every two existing ordinary shares of 50 sen each into five ordinary shares of 20 sen each in Ekovest.
A special dividend of 25 sen per share will be distributed to shareholders of Ekovest from the RM1.13 billion sale.
Lim said the proposal is in line with the company’s broad strategy to monetise its matured infrastructure assets to free up financial resources for the infrastructure division expansion and other core businesses, such as construction and property development.
On Bursa Malaysia yesterday, Ekovest shares closed two sen lower at RM2.58.