KUALA LUMPUR (Jan 15): 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 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 today.
 
The proposed alignment of DUKE Phase-3, measuring approximately 35km, will traverse north to south of Kuala Lumpur and will serve areas such as University 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 and is expected to be financed via a combination of internally generated funds, borrowings and/or other fund raising exercise, subject to the finalisation of the DUKE Phase-3 technical and financial terms and conditions,” it added.
 
(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)