WGB offers to buy Plus for RM3b
Published on: Friday, October 11, 2019
KUALA LUMPUR: Widad Group Bhd has offered to buy Plus Expressways Bhd concessionaires by taking over the 51 per cent stake owned by Khazanah Nasional Bhd for a RM1.5 billion cash consideration, or 100 per cent of the concessionaires owned by Khazanah and the Employees Provident Fund (EPF) for RM3 billion cash.
The takeover proposal was submitted to Prime Minister Tun Dr Mahathir Mohamad, the Works Ministry and Ministry of Economic Affairs on Oct 9, the integrated facility management and construction conglomerate said in a statement.
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The highways involved in the concessionaires of Plus Expressways Bhd are Plus Highway, Second Link Expressway, Penang Bridge, North South Expressway Central Link, Butterworth Kulim Expressway and Seremban-Port Dickson Highway.
“In the event that Widad successfully takes over the concessionaires, the group will reduce the current toll charges by 25 per cent to 40 per cent.
“This is in line with the government’s manifesto to reduce the burden of the people, which we fully support. We also intend to help the government by waiving the outstanding compensation of the government to Plus worth RM338.5 million as of Dec 31, 2018,” executive chairman, Tan Sri Muhammad Ikmal Opat Abdullah said.
Both offers include the waiver of toll compensation worth RM 2.7 billion incurred by the government for the abolishment of tolls in Plaza Batu Tiga and Bukit Kayu Hitam.
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The group has also proposed to give a 50 per cent discount for toll fares during festive seasons such as Hari Raya, Chinese New Year and Deepavali for as long as the Group deems reasonable.
Muhammad Ikmal also said the group would work to refurbish the involved highway rest stops and implement new artificial intelligence technology to improve highway and traffic management ,with the additional promise of not undertaking any retrenchment of staff for at least five years after the takeover.
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The group has identified its global strategic partner/investor to fund the proposed acquisition, coupled with the group’s internal funds and its fundraising plan via sukuk Medium Term Note and equity issuance.
Muhammad Ikmal is the Founder and Group Leader of Widad Business Group, a corporate holding which provides jobs to more than 1,500 people throughout Malaysia.
WBG was incorporated in 2002, to fulfill the growing needs for Bumiputera contractors of calibre to serve the country’s rapid economic growth and development.
The group has since grown and diversified its activities into integrated facility management, construction, operations and maintenance, mechanical and electrical services, building automation system, energy management, property development, education, media & ICT services, hospitality, aquaculture and oil & gas.
Earlier this week, Dr Mahathir said that the government would study any proposal to acquire PLUS Malaysia Bhd if it met the country’s demands.
It was reported that a Malaysian-led Hong Kong-based private equity firm, RRJ Capital, had expressed interest in acquiring Plus Malaysia Bhd for RM3.5 billion.
However, Khazanah Nasional Bhd managing director Datuk Shahril Riza Ridzuan said on Oct 6 that the company had no intention of selling its strategic assets to any party.
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