KUALA LUMPUR: PLUS EXPRESSWAYS BHD [] has received an offer from UEM Group Bhd and the Employees Provident Fund (EPF) as joint offerors to acquire all its business and undertakings , including assets and liabilities for RM23 billion or RM4.60 per share cash.
UEM and EPF said in a joint statement on Friday, Oct 15'' they would set up a co-investment vehicle to make the offer to PLUS. The co-investment vehicle will be 51% owned by UEM Group, with the remaining 49% owned by EPF.
They said the offer was subject to the successful restructuring of the Concession Agreement on acceptable terms for all parties.
In a related development, Prime Minister Datuk Seri Najib Razak announced during the tabling of the Budget 2010/2011 that the government will not raise toll rates for PLUS-owned highways for next five years with immediate effect.
The offer confirms a report by The Edge FinancialDaily on Oct 15 that the EPF and Khazanah Nasional Bhd will undertake to buy all the assets and liabilities of PLUS.
Khazanah already owns a 16.7% stake in PLUS. UEM Group Bhd, which is also owned by Khazanah, holds another 38.5%, making a total of 55.24% or 2.76 billion shares.
EPF has a 12.27% stake or 613.47 million shares in PLUS. Together, EPF and Khazanah own a 67.5% stake in the toll road operator.
PLUS owns and operates Projek Lebuhraya Utara-Selatan Bhd; Expressway Lingkaran Tengah Sdn Bhd; Linkedua (Malaysia) Bhd; and Konsortium Lebuhraya Butterworth-Kulim (KLBK) Sdn Bhd in Malaysia.
Its overseas interests include PLUS Kalyan (Mauritius) Pte Ltd; PLUS BKSP Toll Ltd; PT Lintas Marga Sedaya; PT Cimanggis Cibitung Tollways; Indu Navayuga Infra Project Pte Ltd; and PLUS Plaza (Mauritius) Pte Ltd, as well as a company to be incorporated to enter into a concession agreement in Gujarat, India.
PLUS said it would appoint the relevant advisers in due course and deliberate on the terms of the offer and decide on the next course of action.'' 'An announcement will be made once the board has made a decision on the offer,' it said.
EPF deputy chief executive officer Shahril Ridza Ridzuan the EPF viewed the proposed acquisition of the PLUS business as an opportunity to acquire a mature, cashflow generating asset with an attractive risk-return profile, which would provide stable returns for our contributors' retirement savings.
'We believe that ownership by EPF and UEM will allow PLUS to improve its financial performance further,' he said.
UEM group managing director and chief executive officer Datuk'' Izzaddin Idris said PLUS, which was the fifth largest expressway operator in the world, was a key national asset.
'Expressways development and management remains one of UEM Group's core focus areas and UEM Group will continue to leverage PLUS' track record for its international growth plans.'
'If successful, our intention is for PLUS to continue to be run by the same group of professionals who have been responsible for making PLUS a globally respected tolled highway operator,' he said.
UEM and EPF said in a joint statement on Friday, Oct 15'' they would set up a co-investment vehicle to make the offer to PLUS. The co-investment vehicle will be 51% owned by UEM Group, with the remaining 49% owned by EPF.
They said the offer was subject to the successful restructuring of the Concession Agreement on acceptable terms for all parties.
In a related development, Prime Minister Datuk Seri Najib Razak announced during the tabling of the Budget 2010/2011 that the government will not raise toll rates for PLUS-owned highways for next five years with immediate effect.
The offer confirms a report by The Edge FinancialDaily on Oct 15 that the EPF and Khazanah Nasional Bhd will undertake to buy all the assets and liabilities of PLUS.
Khazanah already owns a 16.7% stake in PLUS. UEM Group Bhd, which is also owned by Khazanah, holds another 38.5%, making a total of 55.24% or 2.76 billion shares.
EPF has a 12.27% stake or 613.47 million shares in PLUS. Together, EPF and Khazanah own a 67.5% stake in the toll road operator.
PLUS owns and operates Projek Lebuhraya Utara-Selatan Bhd; Expressway Lingkaran Tengah Sdn Bhd; Linkedua (Malaysia) Bhd; and Konsortium Lebuhraya Butterworth-Kulim (KLBK) Sdn Bhd in Malaysia.
Its overseas interests include PLUS Kalyan (Mauritius) Pte Ltd; PLUS BKSP Toll Ltd; PT Lintas Marga Sedaya; PT Cimanggis Cibitung Tollways; Indu Navayuga Infra Project Pte Ltd; and PLUS Plaza (Mauritius) Pte Ltd, as well as a company to be incorporated to enter into a concession agreement in Gujarat, India.
PLUS said it would appoint the relevant advisers in due course and deliberate on the terms of the offer and decide on the next course of action.'' 'An announcement will be made once the board has made a decision on the offer,' it said.
EPF deputy chief executive officer Shahril Ridza Ridzuan the EPF viewed the proposed acquisition of the PLUS business as an opportunity to acquire a mature, cashflow generating asset with an attractive risk-return profile, which would provide stable returns for our contributors' retirement savings.
'We believe that ownership by EPF and UEM will allow PLUS to improve its financial performance further,' he said.
UEM group managing director and chief executive officer Datuk'' Izzaddin Idris said PLUS, which was the fifth largest expressway operator in the world, was a key national asset.
'Expressways development and management remains one of UEM Group's core focus areas and UEM Group will continue to leverage PLUS' track record for its international growth plans.'
'If successful, our intention is for PLUS to continue to be run by the same group of professionals who have been responsible for making PLUS a globally respected tolled highway operator,' he said.
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