MAJU Holdings Sdn Bhd has made a bid of more than RM36 billion to take over PLUS Malaysia Bhd, the Edge Financial Daily reports.

PLUS is owned by UEM Group Bhd and the Employees Provident Fund (EPF). The Khazanah Nasional Bhd-owned UEM controls 51% of the highway operator with EPF controlling the rest.

Maju is said to have sent a letter of intent (LoL) and appointed Evercore Group LLC to advise on the acquisition, the business daily said.

PLUS chairman Mohd Sheriff Mohd Kassim confirmed receiving a copy of the offer, adding that any negotiation will be handled by Khazanah and EPT.

“Yes, I got a copy (of the offer),” he was quoted as saying. Maju’s indicative offer is in excess of RM36 billion.

Maju Holdings group executive chairman Abu Sahid Mohamad was quoted as saying in July he was “very confident of pulling it (the acquisition) off. I have everything ready… I have the money, I have the blessings of the highest levels in the country. I have the advisers and bankers all ready, and I have the formula to do it.”

PLUS operates the North-South Expressway, New Klang Valley Expressway, Federal Highway Route 2 and Seremban-Port Dickson Highway.

A source told the Edge Financial Daily that Maju plans to freeze toll rates for 20 years until the end of the concession period.

The move will cost the federal government RM900 million if no toll hikes are implemented.

Between 2008 and 2014, Putrajaya was forced to pay RM2.2 billion in compensation for not allowing highway concessionaires, which manage 18 highways, to increase the toll rates. – September 12, 2017.