Cupboard has determined PLUS is not going to be bought – report

The federal government has apparently determined that PLUS Malaysia is not going to be bought and can stay beneath the management of present shareholders Khazanah Nasional and the Staff Provident Fund (EPF), The Edge Markets reviews, citing inside sources.

The sources advised the publication that the freeway concession settlement with PLUS will nonetheless be restructured with an intention to scale back toll charges for the good thing about the folks. It was beforehand reported that motorists would stand to get pleasure from as much as 18% discount in toll rates on the NSE following a takeover, as introduced throughout Budget 2020.

The Cupboard had mentioned the subject of PLUS on Wednesday, as confirmed by finance minister Lim Guan Eng. He nonetheless said that any announcement on the matter by the federal government can be in writing, because it was a significant announcement.

The nation’s sovereign wealth fund Khazanah, by way of UEM Group, owns 51% of PLUS, with EPF holding the remaining 49%. Highways operated by PLUS are the North-South Expressway (NSE), Second Hyperlink Expressway, Penang Bridge, North-South Expressway Central Hyperlink, Butterworth-Kulim Expressway and Seremban-Port Dickson Freeway.

Yesterday, Khazanah stated by way of an announcement that the federal government has been partaking the shareholders of PLUS with the target of decreasing the burden of tolls on freeway customers, relieving the federal government of compensation pressures, in addition to respecting the worth of the freeway concession for present debt and fairness holders.

The souces added that the federal government had not decided but on the proposed takeover of four Klang Valley highways operated by Gamuda. The highways are the Lebuhraya Damansara Puchong (LDP), Sistem Penyuraian Trafik KL Barat (Dash), Lebuhraya Shah Alam (Kesas) and the Sensible Tunnel.

In December, Lim had stated that the Cupboard would decide on the proposed takeover of PLUS in addition to the Gamuda-operated highways sometime in January, because it wanted to resolve on the matter shortly to keep away from paying additional compensation to the concessionaires over frozen toll hikes.

The federal government obtained 4 provides final 12 months for the takeover of PLUS, these being from Widad Group, Maju Holdings, RRJ Capital and Tan Sri Halim Saad’s car Karongsa Private Capital.

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