Ministry: Govt concerned over takeover of PLUS

MAJU Holdings has not succeeded in its bid to take over PLUS Malaysia Bhd as the Government has concerns about the risks and uncertainty over the proposed move.

“Although the Government welcomes any takeover proposal, it must meet certain requirements,” the Finance Ministry said in a written reply to Hee Loy Sian (PKRPetaling Jaya Selatan).

Maju Holdings executive chairman Tan Sri Abu Sahid Mohamed has made public his company’s intention to acquire PLUS, pledging that it would not raise toll rates for 20 years if the takeover goes through.

The ministry said the proposed takeover cannot be seen solely from the non-increase of toll charges over several years and low maintenance costs.

“Any takeover plan must be practical so it will not end up like Perwaja (Steel), which was privatised but only to be shut down later,” said the Finance Ministry.

“It also has to meet the needs of the Government and these include operational and financial capabili- ties for the North-South Expressway in the long run.”

In line with this, the ministry said the PLUS takeover should be supported by clear and strong financial sources to withstand any economic shock or foreign exchange volatility that might arise.

“This is important so that the Government will not have to bail out PLUS if any untoward incident happens,” it added.

The Government, therefore, views seriously the financial standing and capability of a private entity such as Maju Holdings in the takeover bid.

“Due to the risks and uncertainty involved, the Government has no plans to divest its stake in PLUS Malaysia Bhd to Maju Holdings,” the ministry said.

Two shareholders of PLUS Malaysia Bhd – the Employees Provident Fund (EPF) and UEM Group Bhd – have reiterated that they have no intention to sell their stakes in the country’s largest highway concessionaire.

The acquisition plan is believed to cost over RM30bil involving both the stakes held by EPF and UEM.