The highway concession companies LDP, Kesas, Sprint and Smart Tunnel have each accepted their conditional offer letters from Amanat Lebuhraya Rakyat (ALR), which wants to regain ownership of the highways. Gamuda, the giant behind the four highways, said the companies delivered the written acceptances on Monday.
In a depot in Bursa, reported by Bernama, Gamuda said each of the offerings was offered by ALR on a stand-alone basis and are mutually exclusive. “Each concession company plans to enter into separate negotiations with ALR to finalize the terms and conditions of the respective definitive agreements for the proposed divestments,” he said.
Gamuda said the execution of the definitive agreements by each company with ALR will be subject to the completion of a due diligence exercise on each motorway concession company and the approval by the competent regulatory authority for each offer. to the satisfaction of ALR.
The agreements are also subject to execution by each company based on terms and conditions to be approved by ALR, approval of income tax exemption and government stamp duty exemption. and the required approvals of the respective shareholders.
Earlier this month, Gamuda received ALR’s offer to acquire its stake in the four companies – which is 70% in Kesas, 51.6% in Sprint; 43.2% to Litrak (LDP) and 50% to Smart – for a total of RM2.33 billion. The total enterprise value is RM5.48 billion. Separately, Kumpulan Perangsang Selangor (KPS) said its 20% associated company, Sprint Holdings, had accepted ALR’s offer.
Ahead of this, Gamuda Deputy Group Managing Director Mohammed Rashdan Mohd Yusof said motorists in the Klang Valley could save RM5 billion thanks to the government’s proposal to restructure the four toll concessions, which includes the promise of no increase in toll rates for the remainder of the concession periods. This is a win-win situation as Putrajaya will also save at least RM4.3 billion in compensation to highway operators when planned toll rate hikes do not occur.
The Gamuda executive also said the proposal will also see the concession periods shortened as the LRA is forced to repay its funding (sukuk) as soon as it can, then returning ownership of the four highway concessions to the government. .