This article first appeared in The Edge Financial Daily on June 28, 2019

KUALA LUMPUR: Gamuda Bhd says its board of directors is in favour of accepting the federal government’s offer to take over all four toll concessionaires linked to the group for a combined RM6.2 billion at the enterprise value.

They are Lingkaran Trans Kota Holdings Bhd (Litrak), Sistem Penyuraian Trafik KL Barat Holdings Sdn Bhd (Sprint), Kesas Sdn Bhd and Projek SMART Holdings Sdn Bhd.

In a filing with Bursa Malaysia yesterday, Gamuda said the board had deliberated on the proposed offers by Minister of Finance Inc (MoF Inc) and had resolved to vote in favour of accepting them at the respective concession holding companies.

“Our board finds the offer fair and reasonable, and as such has approved it.

“The board will make the appropriate announcements in due course after the going through the relevant due process with its respective associated companies and joint venture company,” it added.

Gamuda owns a 44% stake in Litrak, Sprint (52%), Kesas (70%) and SMART (50%). Based on Gamuda’s effective interest in these toll highways, the group expects its share to be RM2.36 billion, which is equivalent to 96 sen per share, from the divestments.

The government had in February announced its intention to acquire the four highways in the Klang Valley, as part of its election promise.

Gamuda shares closed up five sen or 1.36% at RM3.72 yesterday, bringing a market capitalisation of RM9.19 billion. Year to date, the counter has risen 59%.