Tuesday 19 Mar 2024
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KUALA LUMPUR: Ekovest Bhd, controlled by tycoon Tan Sri Lim Kang Hoo and Datuk Haris Onn Hussein, the brother of Defence Minister Datuk Seri Hishammuddin Hussein, has received the green light from the Prime Minister’s Department’s Public Private Partnership Unit (PPPU) on its proposed privatisation of the RM3.57 billion Duta-Ulu Kelang Expressway Phase-3 (Duke Phase-3).

Ekovest (fundamental: 2.4; valuation: 0.9) said its wholly-owned subsidiary, Konsortium Lebuhraya Utara-Timur (KL) Sdn Bhd (Kesturi), has received a letter from the PPPU, approving in principle the proposed privatisation of the Duke Phase-3 on Jan 14.

The proposed privatisation of Duke Phase-3 is subject to further negotiation to finalise its technical and financial terms and conditions, it said in a filing with Bursa Malaysia yesterday. “We expect to sign the (definitive) agreement (with the government) within five to six months. After that we have a year’s time to engage with banks for financing. Construction will start once we have secured financing from the bank,” Ekovest managing director Datuk Lim Keng Cheng told The Edge Financial Daily yesterday.

He said construction of the highway may begin in June next year, with completion in four years.

The proposed alignment of Duke Phase-3, measuring 35km, will traverse north to south of Kuala Lumpur and will serve areas such as Universiti Tunku Abdul Rahman, Wangsa Maju, Setiawangsa, Ampang, the Tun Razak Exchange and the Bandar Malaysia Development Corridor, and Kerinchi.

A special purpose vehicle under Nuzen Corp Sdn Bhd, the immediate holding company of Kesturi and a wholly-owned subsidiary of Ekovest, will be incorporated to undertake the Duke Phase-3, according to the statement. “The project cost of the Duke Phase-3 is estimated to be RM3.57 billion,”it added.

 

This article first appeared in The Edge Financial Daily, on January 16, 2015.

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