A WORKING paper is being prepared on the proposed takeover of four tolled highways by the government, which will then be submitted to the cabinet for final approval, said a government source.

The source told The Malaysian Insight that the green light would have to be given by the cabinet to conclude the deal.

“The takeover deal is subject to final cabinet approval, as mentioned in the offer to the highway concessionaires, Finance Minister (Lim Guan Eng’s) statement and reply in Parliament.”

The Malaysian Insight understands that the Finance Ministry had no knowledge on an alleged pause on the deal, as reported by Singapore’s Straits Times earlier today.

In its report, The Straits Times quoted an unnamed minister as saying that the takeover of the four expressway concessionaires from Gamuda Bhd had been put on hold due to internal disagreement over the Finance Ministry-led proposal.

The minister reportedly told the Singapore paper that “the whole matter is on hold pending a full review”.

The Minister of Finance Inc (MoF Inc) had offered 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).

It had also offered to acquire Lingkaran Trans Kota Holdings Bhd (Litrak), in which Gamuda holds a 44% stake.

The buyout would cost the government RM6.2 billion.

Although the proposal has been accepted by the highway concessionaires, it is still subject to cabinet approval.

Lim had previously said the cabinet had given its in-principle approval on February 27, while Prime Minister Dr Mahathir Mohamad approved the conditional offer on June 20.

However, the deal is still subject to a final approval by the cabinet. – July 31, 2019.