UEM, EPF can use RM36b proceeds to ramp up future returns, say analysts

KUALA LUMPUR: The sale of PLUS Malaysia Bhd’s entire assets and liabilities for RM36 billion to Tan Sri Abu Sahid Mohamad’s Maju Holdings Sdn Bhd will be a positive move for UEM Group and the Employees Provident Fund (EPF), say analysts.

Other than receiving higher returns from the sale, UEM and EPF could consider using the proceeds to ramp up future returns through other good investments, they said.

MIDF Research head Redza Rahman said it would be a good decision to sell PLUS if it could get high returns from the sale.

“It all depends on the returns they (UEM and EPF) will get from the sale.

“If they can get better returns by deploying the money from the sale proceeds to other investments; for example capital expenditure or investment in other asset classes; I reckon that the sale would be good.

“The consideration for EPF is the asset allocation strategies, which would be an important guide. It would be positive if they can find other investments that could give better returns at the same risk profile,” he said.

However, Redza said if EPF felt the investment in PLUS was meant to be a social obligation to ensure the people had a voice in the management of PLUS through EPF, then perhaps it would make sense to hold onto PLUS.

Further, another analyst from an investment bank said the deal was now down to EPF and UEM as the offer looked good on paper.

EPF chief executive officer Datuk Shahril Ridza Ridzuan said since there was already a joint statement done on the matter, he had nothing to add for now. Amir Hisyam Rasid