Maju offers up to 36% toll reductions in PLUS takeover

PETALING JAYA: Maju Holdings Sdn Bhd is offering a reduction in tolls ranging from 25% to up to 36% under its amended proposal to the government.

In a statement, the company said it has proposed to bear the toll reduction in full and said it was not seeking financial compensation from the government for this.

“The government currently owes PLUS approximately Rm2.7bil in toll compensation and if Maju takes over PLUS, we are pleased to inform that we would no longer hold the government responsible for these debts,” it said.

Maju said it would instead absorb the Rm2.7bil compensation.

“With this latest offer that we have submitted to the government, existing shareholders of PLUS would benefit from an estimated total equity internal rate of return of approximately 16%.

“This represents a return that far surpasses the cost of equity for a majority of other toll road concessions, both globally as well as across South-east Asia,” it added.

Maju also said that as part of its proposal, it was committed to investing about Rm5.3bil, which will include lighting up the entire length of the highway along with other much-needed enhancements.

It also pointed out that its operational track record in managing toll roads spoke for itself.

“We have successfully operated the MEX highway in a highly cost-effective manner compared with PLUS toll roads that should benefit from economies of scale.

“In fact, we have one of the lowest costs per kilometre in the country. As such, we are confident we would be able to reduce maintenance costs for PLUS,” it said.

Maju reiterated that its offer was a compelling one and it would alleviate the government’s debt situation.

“Furthermore, we would like to reiterate that our enterprise value to purchase PLUS including debt outstanding to bond holders would be Rm34.90bil.

“This purchase consideration is a reflection of the true and fair value of this company and its assets, taking into consideration our intention to provide Malaysian road users with tangible discounts,” it said.

This latest proposal of Maju’s does not make any mention of an extension of the current concessions.