Silk’s shares actively traded after RM380 mln toll concession asset disposal announcement

KUALA LUMPUR: Si lk Holdings Bhd’s shares were actively traded yesterday after announcing the sale of its toll concession asset to Permodalan Nasional Bhd ( PNB) for RM380 million.

At closing, its shares perked 3.5 sen to 44 sen with 17.14 million shares traded.

In a filing to Bursa Malaysia yesterday, Silk said, it has signed a conditional share purchase agreement with PNB to dispose of 100 per cent of the issued and paid- up share capital of Sistem LingkaranLebuhraya Kajang Sdn Bhd ( SILK Highway) for RM380 million.

Si lk said it intended to allocate up to RM200 million for future investments, including enhancing and strengthening its existing offshore marine support services business and investment in related businesses in the oil and gas segment as well as other viable investment opportunities to be identified.

The company would also allocate up to RM70 million for distribution to its shareholders and RM110 million for general corporate and working capital and others, it said.

“Subject to all relevant approvals being obtained and the fulfilment of several condit ions, including the completion of due diligence, the proposed disposal is expected to be completed by the first quarter of 2017,” it said.

Silk is the concession holder of the 37-kilometre SILK Highway under the concession agreement executed on Oct 8, to finance, design, construct, operate and maintain the highway for 36 years ending July 31, 2037.

The highway is a primary urban road serving the southeastern corridor of Klang Valley, linking Balakong, Sungai Long, Kajang, Bangi, Serdang and Putrajaya. — Bernama