Takeover of 4 tolls a ‘win-win’, says analyst

 

Gamuda Bhd has a 50% stake in SMART, one of four highways where the toll rates will no longer be increased. (Bernama pic)

PETALING JAYA: The proposed takeover of four toll concessions through the highway trust model is a “win-win” for the government, road users and infrastructure giant Gamuda Bhd, says an analyst.

Gamuda has a stake in all four concessions.

In a report by The Edge, CGS-CIMB analyst Sharizan Rosely said he believes the planned RM5.4 billion takeover of the LDP, SMART, SPRINT and Kesas highways by non-profit company, Amanat Lebuhraya Rakyat Bhd (ALR) will materialise.

“The highway trust model is deemed a win-win deal for Gamuda, the government and highway users over the long-term,” he said.

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Under the plan for the proposed takeover, the government will be able to save at least RM4.3 billion on compensation for postponing increases in toll rates throughout the concession periods.

At the same time, the toll rates for the four highways will no longer increase until the concessions expire.

Gamuda which has a stake in all for highways – LDP (43%), SMART (50%), SPRINT (52%), and Kesas (70%) – is expected to come in for a sizeable windfall.

Meanwhile, PublicInvest Research said it believed the divestment was positive for Gamuda despite the fact that it will have a loss of recurring earnings to the tune of some RM170 million annually.

“Upon completion of the deal, Gamuda will become a relatively cash rich company,” it said, adding it was positive that Gamuda would reward shareholders with a special dividend. - FMT