PH Government offers RM6.2bil to buy Litrak and three other highway concessionaires

Govt offers RM6.2bil to buy Litrak and three other highway concessionaires

Friday, 21 Jun 20199:05 PM MYT

by izwan idris



KUALA LUMPUR: The government has made a huge offer to take over Lingkaran Trans Kota Holdings Bhd

image: https://cdn.thestar.com.my/Themes/img/chart.png (Litrak) and other three other toll concessionaires all linked to Gamuda Bhd

image: https://cdn.thestar.com.my/Themes/img/chart.png.



The government, in February this year, has announced its intention to acquire the four highways, as part of its election promise.


Litrak, in filing with Bursa Malaysia today, said the company has received a RM2.47bil take over offer from the government.

The offer values the stock at RM5.20 a share, a huge premium over its last traded price.




In the filing, Litrak also said the government has offered to buy its 50% owned associate company Sistem Penyuraian Trafik KL Barat Holdings Sdn Bhd (Sprint) for RM1.984bil.

The take over offers for Litrak and Sprint will be undertaken by a special purpose company wholly owned by Minister of Finance Inc (MOF Inc).

"The offers to Litrak and Sprint remain valid until 5pm on July 12, after which the offers shall forthwith lapse and cease to have any force or effect unless MOF Inc agrees in writing to extend the period during which the offers shall continue to be valid,' it said.

Meanwhile, MOF Inc is simultaneously making similar offers to acquire all the securities of Kesas Sdn Bhd and Syarikat Mengurus Air Banjir Dan Terowong Sdn Bhd (SMART)

The offers to acquire Litrak, Sprint, Kesas and SMART are interconditional upon each other unless waived by MOF Inc or SPV in writing," it said.

Separately, Gamuda also said that its highway concession companies have also received take over offers from the government.

Gamuda owns a 44% stake in Litrak, a 52% stake in Sprint, a 70% stake in Kesas and a 50% stake in SMART.

The government's offer values Kesas at RM1.377bil, while SMART is worth RM369mil.


Read more at https://www.thestar.com.my/business/business-news/2019/06/21/govt-offers-to-buy-litrak-and-three-other-highway-concessionaires/#HxVHrt6JeEoxlItg.99



Govt to buy over four toll highways


Saturday, 22 Jun 2019

by izwan idris

Offer for Kesas: The government has made a RM6.2bil offer to take over Kesas Highway and three other highways.


KUALA LUMPUR: The government has made a RM6.2bil offer to take over Lingkaran Trans Kota Holdings Bhd

image: https://cdn.thestar.com.my/Themes/img/chart.png (Litrak) and three other toll concessionaires linked to Gamuda Bhd

image: https://cdn.thestar.com.my/Themes/img/chart.png.The highways include Kesas Holdings Bhd, Sistem Penyuraian Trafik KL Barat Holdings Sdn Bhd (Sprint) and Syarikat Mengurus Air Banjir Dan Terowong Sdn Bhd (Smart).



The government, in February, has announced its intention to acquire the four highways, as part of its election promise.


Litrak, in a filing with Bursa Malaysia yesterday, said the company has received RM2.75bil takeover offer from the government to acquire all shares in the company and its 50% stake in Sprint.

The offer values the stock at RM5.207 a share, a huge premium over its last traded price. Shares in Litrak was traded at RM4.21 a share.


The takeover offers for Litrak and Sprint will be undertaken by a special purpose company wholly owned by the Minister of Finance Inc (MoF Inc).

“The offers to Litrak and Sprint remain valid until July 12, after which the offers shall forthwith lapse and cease to have any force or effect unless MoF Inc agrees in writing to extend the period during which the offers shall continue to be valid,’ it said.

In addition, MoF Inc made an offer to Gamuda Bhd offer to acquire stakes in Kesas, Smart and Sprint

Gamuda owns a 44% stake in Litrak, a 50% stake in Sprint, a 70% stake in Kesas and a 50% stake in Smart.

“The offers to acquire Litrak, Sprint, Kesas and Smart are inter conditional upon each other unless waived by MoF Inc or SPV in writing,” it said.

The government’s offer values Kesas at RM1.377bil, while Smart is worth RM369mil, Sprint at RM1.98bil and Litrak for RM2.47bil.

The offer is subject to due diligence and the Cabinet’s approval. The ministry is targeting to complete the acquisition by the end of this year.


Read more at https://www.thestar.com.my/business/business-news/2019/06/22/govt-to-buy-over-four-toll-highways/#Wuf4zgJhYGV0y2aG.99