Gamuda accepts ALR's highway acquisition offers

 

Gamuda Bhd today announced that it has agreed to sell its stake in four highways to Amanat Lebuhraya Rakyat Bhd (ALR).

In a filing to Bursa Malaysia today, the company said written acceptances of ALR's offers were delivered today.

Following this, the four highway companies - Kesas Holdings Berhad (Kesas), Sistem Penyuraian Trafik Kl Barat Holdings Sdn Bhd (Sprint), Lingkaran Trans Kota Holdings Berhad (Litrak) and Projek Smart Holdings Sdn Bhd (Smart) - will have to enter separate negotiations with ALR to finalise the terms and conditions.

Gamuda is the majority shareholder of all four companies, except Litrak, in which it is the largest individual shareholder.

Government-controlled funds are the major shareholders in most of the highway companies.

ALR is a private company formed in December 2011 with an explicit goal of taking over highways operated by the four above companies while being a non-profit.

According to Works Minister Fadillah Yusof, the takeover by ALR will allow the toll rates at the four highways to be maintained until the end of the concession period, which will be determined later.

Fadillah added that this deal will also allow the government to cease subsidy payments to highway operators, paid in lieu of scheduled increased toll charges contained in the concession agreement. - Mkini