MINISTER of Finance Inc has offered to buy Gamuda Bhd’s stake in four expressway concessionaires for RM6.2 billion, as the government works towards reducing toll in the Klang Valley

In a filing with Bursa Malaysia today, Gamuda Bhd said it has received letters of offer from MoF Inc to acquire its shares in four companies.

 MoF Inc proposes to acquire Gamuda’s 70% stake in its subsidiary Kesas Holdings Bhd, Gamuda’s 52% stake in its associate company, Sistem Penyuraian Trafik KL Barat Holdings Sdn Bhd (Sprint), and Gamuda’s 50% stake in the joint venture Project Smart Holdings Sdn Bhd (SMART).

In a separate filing, Lingkaran Trans Kota Holdings Bhd (Litrak) in which Gamuda holds a 44% stake, said that it has also received letters of offer.

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

The acquisitions will be undertaken by a special purpose vehicle of MoF Inc, to be determined at a later date.

Hong Leong Investment Bank Bhd announced on behalf of Gamuda that the offer is valid until 5pm on July 12.

Gamuda is asking RM1.37 billion for its stake in Kesas, RM1.98 billion for Sprint, RM2.47 billion for Litrak ,and RM369 million for SMART.
 
Three months ago, the government announced plans to take over the four tolled highways and replace toll with a congestion charge which will vary during peak and non-peak hours.

“Upon successful takeover of the highways, the government intends to abolish the existing toll mechanism.

“In its place, a congestion charge will be introduced where commuters will only pay a congestion charge equivalent to the existing toll for six peak period hours a day,” the Prime Minister’s Office had announced in a statement. – June 21, 2019.