Monday, October 18, 2010

UEM, EPF: Acquisition of PLUS to provide steady long-term cash flows

KUALA LUMPUR: UEM Group Bhd and the Employees Provident Fund's (EPF) proposed acquisition of of all assets and liabilities of PLUS EXPRESSWAYS BHD [] would lock in an investment with steady long-term cash flows.

'This deal makes sense at many levels, including the fact that the offer is being made by PLUS' existing shareholders who collectively own 52.3% of PLUS,' said UEM group managing director / chief executive officer Datuk Izzaddin Idris and EPF's deputy CEO (Investment) Shahril Ridza Ridzuan in a joint statement on Monday, Oct 18.

Shahril said: 'EPF views the joint acquisition of PLUS as an opportunity to acquire a mature, cash flow generating asset with an attractive risk-return profile.'

UEM Group and its parent Khazanah Nasional Bhd'' collectively hold 55.25% of PLUS, of which 15.02%'' has been pledged against exchangeable trust certificates issued by Khazanah. The EPF owns 12.03% in PLUS.

Last Friday, Oct 15, UEM Group and the EPF had made a joint-offer to PLUS to acquire all its business undertakings, including all assets and liabilities of the tolled highway operator.

The acquisition is through a co-investment vehicle which will be 51% owned by UEM Group with the remaining 49% by EPF.


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