KUALA LUMPUR (Feb 25): Gamuda Bhd said today it will ensure that any takeover of its highway concessions is in line with "market valuation norms and practices".

In a filing to Bursa Malaysia, Gamuda confirmed that it is in talks with the government in relation to the proposed takeover of four highway concessions.

"As the board of directors of Gamuda have a fiduciary duty to deliver fair and reasonable value to all its shareholders, Gamuda has to ensure that the proposed transaction will be based on market valuation norms and practices," it said.

On Saturday, the Prime Minister's Office issued a statement saying that it has begun talks with Gamuda to negotiate the acquisition of four highway concessions that the group has a majority stake in.

They are Lebuhraya Damansara Puchong (LDP) and Sistem Penyuraian Trafik KL Barat (SPRINT), which are owned by Gamuda's 43.58%-owned Lingkaran Trans Kota Holdings Bhd (Litrak); 70%-owned Lebuhraya Shah Alam (KESAS); and 50%-owned SMART Tunnel.

Upon successful takeover, the highways will introduce three tiers of usage — toll-free period between 11pm and 5am, full toll charges dubbed "congestion charges" during six peak hours in a day, and discounted rates of up to 30% from existing toll charges for the remaining hours.

Gamuda shares fell 5.92% to RM2.86 today following the news of the takeover bid. At last close, the counter has a market capitalisation of RM7.06 billion.

Litrak, meanwhile, fell 9.35% to close at RM4.17 with a market capitalisation of RM2.2 billion.