Translated by Google Translator:
KUALA LUMPUR (March 21): SILK Holdings Bhd shareholders gave their nod for the company to dispose its toll concession asset for RM380 million in cash to Permodalan Nasional Bhd (PNB).
The company's executive chairman Datuk Mohd Azlan Hashim said that its shareholders approved the proposed disposal of Kajang Traffic Dispersal Ring Road (SILK Highway) to PNB.
"All the shareholders approved the proposed disposal and now the remaining of approvals are from governance authority and due diligence. It will be extended for another one month pending the approval," he said speaking at its extraordinary general meeting (EGM) today.
Subject to the completion of the proposed disposal, part of the proceeds will be distributed to the shareholders through cash dividend of 10 sen per share or an equivalent of about RM70 million.
SILK is the concession holder of the 37km SILK Highway under the concession agreement to provide financing and undertake the design, construction, operate and maintain the SILK Highway for a total period of 36-year ending July 31, 2037.
The disposal consideration is based on SILK's cash flow generating capabilities, future earnings potential as well as the business nature, operational risk and prospects of SILK Highway.
Mohd Azlan reiterate that the disposal was in line with group's strategy to provides an opportunity for Silk Holdings to monetise and unlock the value of its infrastructure assets.
"This allows Silk Holdings to streamline it's operations and use it's financial resources to focus on its offshore marine support services business," he said.