WIDAD Business Group Sdn Bhd (WBG), an integrated facility management and construction conglomerate, in a presentation to the Works Ministry yesterday revised upwards its offer for PLUS Malaysia Bhd.

WBG, in a statement, said it is now proposing to acquire a 100% equity interest in PLUS for RM5.3 billion in cash consideration, in addition to a compensation waiver of RM3.038 billion and debt assumption of RM30 billion, bringing the total enterprise value of the offer to RM38.338 billion.

“The revised offer also contains two additional clauses, namely a waiver of the RM11 billion sukuk guarantee by the government, and a new option for the government to buy back PLUS after 10 years based on market valuation.”

It said the offer of RM38.338 billion, including debt by WBG, is currently the highest bid from the private sector.

It was reported that Putrajaya had received three proposals for the acquisition of PLUS from the private sector.

Maju Holdings Sdn Bhd’s bid for PLUS amounted to an enterprise value of RM34.9 billion, including debts. The other two proposals came from private equity fund RJR Capital and Halim Saad, at RM3.5 billion and RM5.2 billion, respectively.

WBG executive chairman Muhammad Ikmal Opat Abdullah said: “We have heard Prime Minster Dr Mahathir Mohamad’s comments about not yet finding an offer for PLUS that is attractive enough.

“After some deliberation, we have come up with an upgraded offer that better reflects the bright prospects of this company, and a takeover plan that can help reduce the government’s financial burden, as well as provide much-needed savings and convenience to the people who use our roads.”

In the proposal submitted to the works minister, WBG listed several commitments for the PLUS takeover, among them a reduction in toll rates.

On October 9, the conglomerate proposed the purchase of PLUS Expressways Bhd concessionaires by taking over 51% of those owned by Khazanah Nasional Bhd for RM1.5 billion in cash consideration, or 100% of the concessionaires owned by Khazanah and the Employees Provident Fund for RM3 billion in cash consideration.

WBG owns 65% of Widad Group Bhd and 63% of Dataprep Holdings Bhd, both of which are listed on Bursa Malaysia. – Bernama, October 30, 2019.