Ekovest to sell 40% stake in DUKE op­er­a­tor to EPF

The Sun (Malaysia) - - SUNBIZ -

PETALING JAYA: Ekovest Bhd is dis­pos­ing of a 40% stake in Kon­sor­tium Le­buhraya UtaraTimur (KL) Sdn Bhd (Kes­turi), which op­er­ates the Da­mansara Ulu Ke­lang Ex­press­way (DUKE), to the Em­ploy­ees Prov­i­dent Fund (EPF) for RM1.13 bil­lion.

In a fil­ing with the stock ex­change, Ekovest said its wholly-owned sub­sidiary Nuzen Corp Sdn Bhd yes­ter­day en­tered into a bind­ing term sheet with EFP for the stake sale.

The 40% stake com­prises 2 mil­lion or­di­nary shares of RM1 each and 18 mil­lion redeemable pref­er­ence shares of RM1 each held in Kes­turi, and 1.44 mil­lion new shares of RM1 each to be is­sued by Kes­turi at RM100 apiece upon the com­ple­tion of a cap­i­tal­i­sa­tion ex­er­cise to be un­der­taken by Kes­turi.

Last month, Ekovest re­ceived an ex­pres­sion of in­ter­est let­ter from the EPF to en­ter into ex­clu­sive ne­go­ti­a­tions on the dis­posal.

The dis­posal is con­di­tional upon, among oth­ers, the ap­proval of Ekovest’s share­hold­ers, con­sent from the Malaysian govern­ment and hold­ers of the ex­ist­ing se­nior sukuk is­sued by Kes­turi and the EPF be­ing sat­is­fied with the out­come of a due dili­gence ex­er­cise to be car­ried out on Kes­turi.

The par­ties have agreed that they will en­ter into a de­fin­i­tive sale and pur­chase agree­ment (SPA) within 30 busi­ness days from the date of the bind­ing term sheet or later, sub­ject to mu­tual agree­ment.

The par­ties have agreed to co­op­er­ate ex­clu­sively with each other with re­spect to the dis­posal for 30 busi­ness days from the date of the bind­ing term sheet, sub­ject to ex­ten­sion upon writ­ten con­fir­ma­tion of all par­ties.

A de­tailed an­nounce­ment on the pro­posed dis­posal will be made upon fi­nal­i­sa­tion of the SPA, Ekovest said.

As­tram­ina Ad­vi­sory Sdn Bhd has been ap­pointed fi­nan­cial ad­viser for the dis­posal.

Trad­ing in Ekovest shares was sus­pended yes­ter­day pend­ing the an­nounce­ment. On Tues­day, the counter ended 4 sen higher at RM1.97.

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