PJD plans RTO of Scomi Energy

Move will see concessionaire injecting highway project into PN17 firm

PETALING JAYA: PJD Link (M) Sdn Bhd is seeking a listing on Bursa Malaysia through the reverse takeover (RTO) of Practice Note 17 (PN17) Scomi Energy Services Bhd (SESB).

PJD Link, which is the concessionaire of the proposed Petaling Jaya Dispersal Link highway, and its shareholders PJD Link Holdings Sdn Bhd and Noblemax Resources Sdn Bhd have entered into a framework agreement with SESB for this purpose.

It would entail the proposed acquisition of PJD Link by SESB for an indicative price of Rm922mil, which is based on the equity portion of the project financing of the PJD Link Expressway, according to a statement yesterday.

“The framework agreement represents a key step forward towards us seeking a listing on Bursa Malaysia through the reverse takeover of a listed entity.

“By being a listed company, we would be able to tap into the equity capital market to raise funding for the development and construction of PJD Link Expressway,” PJD Link chief executive officer Amrish Hari Narayanan said.

“In addition, the reporting of our performance in accordance with Bursa listing requirements will enhance the level of transparency and governance to the public,” he added.

The parties are expected to enter into a definitive agreement for the proposed acquisition within 60 days.

This proposed acquisition is still subject to the approval of relevant parties and government agencies, PJD Link said in the statement.

“We take note of the public’s concerns and issues raised and have studied various options on improving the alignment to minimise any negative social or environmental impacts.

“Workshops and focus group discussions will also be carried out by our social impact consultants in order to obtain public feedback,” he said.

PJD Link said it would commence public engagement sessions pertaining to the highway to provide information and receive feedback from October 2022 onwards.

This development follows various reports of residential groups voicing their protest against the proposed highway, which has a similar alignment to the scrapped Kinraradamansara Expressway.

The sessions will cover briefing the elected representatives, local councils and residential groups affected by the PJD Link Expressway, it said.

Environmental, social and traffic impact assessments with external professional consultants will also be conducted to assess and mitigate any issues that may arise from the project, it said.

“This project will play a crucial role in supporting the future economic growth plans of Selangor. By cutting down travel times, business productivity will improve, making it an attractive location for investments,” he said.

PJD Link said it has signed a concession agreement with the government on April 5.

SESB has been classified as a PN17 company by Bursa since October 2019 and is required to submit a regularisation plan to uplift its PN17 status by Nov 30, 2022.

SESB had attempted to undertake several initiatives towards the rehabilitation of the company. Its shares closed at 4.5 sen yesterday, giving it a market capitalisation of Rm21mil.

“By being a listed company, we would be able to tap into the equity capital market to raise funding for the development and construction of PJD Link Expressway.” Amrish Hari Narayanan