KUALA LUMPUR: The government has no plans to sell its stake in PLUS Malaysia Bhd to Maju Holdings Sdn Bhd due to the uncertainties and risks associated with the takeover bid, the Dewan Rakyat was told today.
The finance ministry added that the government took into consideration the financial standing and affordability of private entities such as Maju Holdings to support the bid.
This was said in a parliamentary reply to Hee Loy Sian (PKR-Petaling Jaya Selatan), who asked regarding the decision following Maju Holdings’ RM36 billion offer to acquire all PLUS highways.
Maju Holdings executive chairman Abu Sahid Mohamed had made the offer, pledging not to raise toll fares for 20 years if the takeover exercise materialised.
PLUS Malaysia’s two shareholders are the Employees Provident Fund (EPF) and UEM Group Bhd. UEM holds a 51% stake while EPF holds the rest.
Both have said that they have no intention of selling their stakes in the country’s largest highway concessionaire.
The finance ministry said today that the government welcomed any takeover move, but that this must first meet certain requirements.
“Any takeover plans must be practical so it will not end up like Perwaja, which was privatised only to be shut down later,” it said, referring to the steel manufacturer which had to be bailed out by the government in order to stay afloat.
“It also needs to meet the needs of the government. This includes operational and financial capabilities for the North-South Highway in the long run.”
The ministry said the proposed takeover could not be viewed solely from the angle of low maintenance costs and the vow not to raise toll charges.
It said the PLUS takeover must be supported by clear and strong financial sources so that it could continue operating despite economic shocks or volatility in foreign exchange.
“This is important, so the government would not have to bail out PLUS if any untoward incident happens.
“Due to risks and uncertainty in this matter, the government has no plans to let go of PLUS’ stakes to Maju Holdings.” -FMT
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