KUALA LUMPUR: The Employees Provident Fund will definitely consider divesting its stake in Plus Highway Bhd if there is a good offer, says the fund’s chief executive, Tunku Alizakri Alias.
He said if there is any sensible takeover offer which would benefit EPF members in terms of returns and dividends, the fund will definitely study and consider the offer.
“At this juncture, PLUS is an asset that is very positive, it gives really strong returns and it is a well-run organisation.
“In terms of services, it operates over 1,200 kilometres of highways and it gives really good service. So from the EPF perspective, we are very happy with the returns from PLUS and it is also a strong asset,” he told reporters while attending the Khazanah Megatrends Forum 2019 here today.
On Sunday, the government’s investment arm, Khazanah Nasional Bhd, said it was “not interested” in offers that have been made to buy over PLUS, which owns the North-South Highway and several other major expressways. Khazanah owns a majority stake of 51% in PLUS.
A private equity firm based in Hong Kong and Singapore, RRJ Capital, has made an offer to take over PLUS for RM3 billion.
Earlier today, Prime Minister Dr Mahathir Mohamad told reporters that the government would study offers to take over PLUS. “Whatever offers by whoever it will be reviewed by the government,” he told reporters at Parliament. “If the offer is suitable to our demands, then we will entertain them.”
Tunku Alizakri said Mahathir’s comment could have been made on behalf of Khazanah.
He said the EPF foresees “a challenging environment” ahead and the fund would ensure its assets are managed well.
“But we will make sure if we have to buy we will buy the best long-term asset, and if we must sell we will also make sure we get the best deal for any divestment,” he said.
The EPF was always on the lookout to buy and sell assets to give dividends to the shareholders. “The question is, do we have a governance process that is sustainable? (We have to ensure) due diligence is properly done, so our members can rest assured that any divestment that we do is to benefit our members,” he added.
It was reported that the EPF secured dividends of RM1.56 billion from 10 companies that have paid the most dividends in its investment portfolio in the first half of 2019.
The sum received was 5.4 per cent higher than the RM1.49 billion a year ago.
The companies include DiGi.Com Bhd, Axiata Group Bhd, Public Bank Bhd and Hong Leong Bank Bhd. - FMT
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