KUALA LUMPUR (Oct 11): Finance Minister Lim Guan Eng said the Cabinet has approved the takeover of four highways in the Klang Valley, namely the Shah Alam Highway (KESAS), Damansara-Puchong Highway (LDP), Sprint Highway and the SMART Tunnel.

The Prime Minister’s Office had first announced it commenced talks with Gamuda Bhd to negotiate the acquisition of the concessions for the four highways in February.

On June 21, Gamuda said the Minister of Finance Inc (MoF Inc) had issued offer letters to its subsidiaries and associate companies — namely 70%-owned unit Kesas Holdings Bhd, 52%-owned associate Sistem Penyuraian Trafik KL Barat Holdings Sdn Bhd (SPRINT Holdings), 44%-owned public-listed Lingkaran Trans Kota Holdings Bhd (Litrak Holdings), and 50%-owned joint venture Projek SMART Holdings Sdn Bhd — to acquire their toll concessions.

Under the proposal, MoF Inc offered to pay RM6.2 billion (before deducting debts it will assume from the deal) or RM4.5 billion cash, with Gamuda then announcing on June 27 that its board of directors was in favour of accepting the federal government’s offer to take over the four toll concessions.

Lim had previously said in Parliament that the government will fund its takeover of the four highways via bond issuances.