Widad offers to buy PLUS
Company prepares to fork out Rm3bil for the highways
PETALING JAYA: Another offer with a reduction in toll charges has come in for PLUS Expressways Bhd concessionaires from low-profile Widad Business Group Bhd (WBG), which has made a Rm3bil bid for the prized highways.
In a statement yesterday, the integrated facility management and construction company said its proposal offered two options – the first being a 51% takeover of Khazanah Nasional Bhd’s shares for Rm1.5bil in cash consideration, where the remaining 49% will be public shareholding owned by the Employees Provident Fund (EPF).
The second option on the table would be a full takeover of Khazanah and EPF’S shares for Rm3bil in cash consideration.
WBG executive chairman Tan Sri Muhammad Ikmal Opat Abdullah said that in the event the group successfully takes over the concessionaires, the group would reduce the current toll charges by 25% to 40%.
“This is in line with the government’s manifesto to reduce the burden of the rakyat, which we fully support.
“We also intend to help the government by waiving the outstanding compensation of the government to PLUS worth Rm338.5mil as of Dec 31, 2018,” said Muhammad Ikmal, who is the substantial shareholder of WBG.
Both offers included the waiver of toll compensation worth Rm2.7bil incurred by the government for the abolition of tolls in Plaza Batu Tiga and Bukit Kayu Hitam.
According to the group, the options also took into account the extension of the highway concessionaires for 20 more years after the conclusion of the concession period.
WBG said it has identified a global strategic partner/investor to fund the proposed acquisition, coupled with the group’s internal funds and its fundraising plan via a sukuk medium-term note and equity issuance.
The takeover proposal was submitted to Prime Minister Tun Dr Mahathir Mohamad, the Works Ministry and the Economic Affairs Ministry on Oct 9, according to the statement.
The highways that are involved in the concessionaires of PLUS Expressways are PLUS Highway, the Second Link Expressway (Linkedua), the Penang Bridge, the North South Expressway Central Link (Elite), the Butterworth Kulim Expressway (KLBK) and the Seremban-port Dickson Highway (SPDH).
Muhammad Ikmal said the group would also work to refurbish the involved highway rest stops and implement artificial intelligence technology to improve highway and traffic management with the additional promise of not making any retrenchment of employees for at least five years after the takeover.
WBG has also proposed to give a 50% discount for toll fares during festive seasons such as Hari Raya, Chinese New Year and Deepavali for as long as it deems reasonable.
WBG’S offer came a day after Maju Holdings Sdn Bhd offered a reduction in tolls from 25% to up to 36% under its amended proposal to the government for PLUS.
In Maju’s amended proposal, it has proposed to bear the toll reduction in full and said that it was not seeking financial compensation from the government for this.
The government owes PLUS Rm2.7bil in toll compensation, which Maju said it would absorb if successful.
A private equity firm based in
Hong Kong and Singapore, RRJ
Capital, has also reportedly made an offer to take over PLUS for
Rm3bil.
Shares in WGB were one of the most actively traded yesterday, rising 15 sen or 4.92% at 32 sen with 21.3 million shares being done.
At this level, its market cap stood at Rm773mil.