KUALA LUMPUR (Jan 15): The Cabinet had at its meeting today decided that highway concessionaire PLUS Malaysia Bhd will not be sold and will remain with its current shareholders Khazanah Nasional Bhd and the Employees Provident Fund (EPF), according to sources.
"As such, the government's highway concession agreement with PLUS will be restructured with an aim to reduce toll rates for the benefit of the people," these sources said.
theedgemarkets.com was also told the Cabinet has yet to make a decision on the proposed takeover of four Klang Valley highway concessionaires that are related to Gamuda Bhd.
Malaysia sovereign wealth fund Khazanah, via UEM Group Bhd, owns 51% of PLUS while EPF holds the remaining 49%.
At the time of writing, the government had not issued a statement regarding the Cabinet's decision on PLUS and the Gamuda-related highway concessionaires.
Earlier today, Khazanah said in a statement the government has been engaging the shareholders of PLUS with the objective of reducing the burden of tolls on highway users, relieving the government of compensation pressures, as well as respecting the value of the highway concession for existing debt and equity holders.
"There have also been several unsolicited offers which Khazanah is aware of, although the parties concerned have not directly engaged with us. We have provided advice and viewpoints to the government and have engaged with it to assist in determining policy considerations towards achieving the objectives stated above.
"Khazanah would like to emphasise again that throughout the entire engagement process, the government has been thoroughly professional and has upheld the appropriate governance in striving for the best resolution to the matter," Khazanah said.