KUALA LUMPUR (Feb 25): Shares in Lingkaran Trans Kota Holdings Bhd (Litrak) dropped as much as 9.35% on the back of news the government is proposing to take over four major expressways in the Klang Valley.

As of 10:38am, the counter fell 43 sen to RM4.17, with 102,000 shares traded.

While this is 49 sen above the counter's one-year low on May 18 last year of RM3.68, it is RM1.48 lower than the counter's one-year high of RM5.65 on March 20, 2018.

According to Bloomberg, Litrak's consensus target price (TP) is RM4.50, with analysts posting one sell call, one buy call and one hold call.

The sell call came in today, with a TP of RM4.54, while the buy call was made on Dec 29, 2018, and the hold call on Nov 29 last year.

Litrak owns and operates two highways: Leburaya Damansara Puchong (LDP) and Sistem Penyuraian Trafik KL Barat (Sprint).

It is important to note that Gamuda Bhd controls a 43.58% stake in Litrak.

This came in as the government is in talks with Gamuda Bhd to acquire the LDP, Sprint, Leburaya Shah Alam (Kesas) and the Stormwater Management and Road Tunnel (Smart Tunnel) from the latter.

As part of its electoral campaign for the 14th general election last year, the government made a pledge to gradually abolish tolls in stages if it were voted into power.