Gamuda accepts govt offer to take over its 4 highways

Gamuda accepts govt offer to take over its 4 highways

Gamuda’s board of directors has voted to accept the government’s offer to acquire four highway concession companies linked to the group. Gamuda owns a 44% stake in Litrak (the operator of LDP), a 52% stake in Sprint, a 70% stake in Kesas and a 50% stake in Smart (Tunnel).

“The board of Gamuda will make the appropriate announcements in due course after the going through the relevant due process with its respective associated companies and joint venture company,” the company said, in a filing with Bursa Malaysia yesterday.

On June 21, the government announced a RM6.2 billion offer to acquire the four toll concessionaires that operate the LDP, Sprint, Kesas and Smart Tunnel highways.

The plan was first mentioned in February, when the prime minister’s office noted that Pakatan Harapan has promised in its election manifesto to take steps to acquire highway concessions and abolish toll collection in stages, in accordance to the terms of the concession agreement. The move is to alleviate the high cost of living for city commuters.

Gamuda accepts govt offer to take over its 4 highways

According to finance minister Lim Guan Eng, the move will save motorists as much as RM180 million per annum. One will still need to pay to use the highways under a congestion charge system that will be implemented on Jan 1 next year.

“The congestion charge model follows a variable pricing structure which depends on the time of the day. In principle, the government will give discounts of up to 30% for hours outside of peak periods and free travel during off-peak periods. In addition, the maximum congestion charge will be capped at the current toll rate in order to not cause further burden to the commuters,” Lim said.

He added that the move will also save government coffers RM5.3 billion in compensation payments to the toll concessionaires in order to freeze toll rate hikes until the end of the respective concession periods. The collection of congestion charge will be sufficient to service the debt, as well as to finance the operation and maintenance costs of the highways without requiring additional budget allocation, the minister explained.

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Danny Tan

Danny Tan loves driving as much as he loves a certain herbal meat soup, and sweet engine music as much as drum beats. He has been in the auto industry since 2006, previously filling the pages of two motoring magazines before joining this website. Enjoys detailing the experience more than the technical details.

 

Comments

  • Syabas! Tahniah!! Janji ditepati.

    Like or Dislike: Thumb up 28 Thumb down 38
  • Mario and Bros on Jun 28, 2019 at 10:05 am

    Anyway, of course when government offers to take over 4 highways. It will reduces heavy traffic during the morning peak and evening peak. Anyway, what about IJM Berhad Highway as well, IJM Berhad Highway should also abolish tolls as well so that not only to reduces heavy traffic but also it is not needed to pay so much for vehicles toll classes

    Like or Dislike: Thumb up 8 Thumb down 0
    • Rakyat Malaysia on Jun 28, 2019 at 11:12 am

      So right bro. IJM owned Besraya, NPE and Lebuhraya Kajang-Seremban. Kesas going away real soon too, well done Malaysia Baru !!

      Like or Dislike: Thumb up 16 Thumb down 3
    • Alex Chin on Jun 28, 2019 at 11:23 am

      Toll money is needed to pay the largest Civil Service in the world. 1.6 million staff.

      So we need toll money.

      Like or Dislike: Thumb up 6 Thumb down 11
      • English Teacher on Jun 28, 2019 at 2:34 pm

        So amazing Govt dint retrench even 1 single Civil servant. Govt deserve a pat on the back..

        Like or Dislike: Thumb up 11 Thumb down 2
      • redpilled on Jun 28, 2019 at 10:09 pm

        “Malaysia has 500,000 civil servants”- Cuepacs

        Like or Dislike: Thumb up 1 Thumb down 1
    • Anonymous on Jun 28, 2019 at 2:58 pm

      PH Govt takes over 4 highways… but commuters still have to pay toll… so HOW does this ‘reduce’ heavy traffic flow..?

      ONE has got nothing to do with the other.

      Like or Dislike: Thumb up 7 Thumb down 2
      • Julius on Jun 28, 2019 at 4:57 pm

        most of the commuters will choose to use the highway when it’s on the off peak period because of the discount, then peak time wont have so many cars.

        Like or Dislike: Thumb up 6 Thumb down 7
  • mmmmmm on Jun 28, 2019 at 11:04 am

    the toll would end in few years anyway. why should we takeover?

    Like or Dislike: Thumb up 14 Thumb down 3
    • TopsyBoXyTurvy on Jun 28, 2019 at 1:23 pm

      Which toll will end in a few (how many) years? Can you be more specific and list down?

      Like or Dislike: Thumb up 9 Thumb down 0
  • Let-go small fish, catch Big Fish..

    Like or Dislike: Thumb up 3 Thumb down 0
  • Not Toyota Fan on Jun 28, 2019 at 11:58 am

    Ka-¢hing… Laughing all the way to the bank.

    Gamuda say Terima Kasih gomen PH.

    For us tax payers, this is how gomen spend your hard earned money. But didn’t gomen say negara hutang RM1 Trillion???

    Like or Dislike: Thumb up 13 Thumb down 31
    • Not Ferrari Fan on Jun 28, 2019 at 12:08 pm

      Abolish also salah, use gomen money or taxpayer money also…so what do u really want gomen to do? Stop complaining and be grateful albeit a little bit.

      Like or Dislike: Thumb up 19 Thumb down 12
      • Anonymous on Jun 28, 2019 at 2:56 pm

        But PH Govt DIDN’T say ABOLISHED…! Commuters will still need to pay the tolls. WAKE UP..!

        Like or Dislike: Thumb up 12 Thumb down 8
      • EDITOR on Jun 28, 2019 at 5:44 pm

        Do you understand what meaning of the word ‘abolish’?

        Like or Dislike: Thumb up 7 Thumb down 0
    • Company makes money yet ppl still have to pay ‘toll @ congestion charges’.

      Like or Dislike: Thumb up 5 Thumb down 3
    • Ahcong on Jun 28, 2019 at 12:29 pm

      Gomen dont buy, you complain, Gomen buy you complain tax payer money spent, apa lagi kamu mahu?

      Like or Dislike: Thumb up 15 Thumb down 7
  • Peak hours equal going to work and coming back home after work. Why make us pay congestion charge for going to work and coming back home. This is not saving for this category of motorist. Reduce the toll rates for all and fulfill election manifesto.

    Like or Dislike: Thumb up 22 Thumb down 10
    • thepolygonal on Jun 28, 2019 at 1:12 pm

      Peak hours = congestion charge. Airasia fares higher during peak period, or govt buy over Airasia. Then everyone can Fly… for Free^^

      Like or Dislike: Thumb up 13 Thumb down 5
      • EDITOR on Jun 28, 2019 at 2:44 pm

        Flying to holidays are optional. Driving to and fro work isn’t one.

        Like or Dislike: Thumb up 17 Thumb down 4
        • lilytan on Jun 28, 2019 at 5:04 pm

          rapid bas, MRT, KTM Komuter, Lrt, GoKl bas dan riding Ysuku. Monthly RM100 unlimited pass for public transport. Driving are optional to and fro work

          Like or Dislike: Thumb up 14 Thumb down 9
          • EDITOR on Jun 28, 2019 at 5:42 pm

            Try getting a public transport to and fro Subang Hi Tech Park.

            Like or Dislike: Thumb up 14 Thumb down 1
  • Anson on Jun 28, 2019 at 12:37 pm

    Please don’t abolish all of the tolls. Just reduce the fares of tolls to maintain the highways.

    Like or Dislike: Thumb up 10 Thumb down 1
    • Concur that, it make’s more sense as the overall transportation cost will be slightly lower especially for the logistics industry.

      Taking over this 4 highways alone is not gonna reduce the rakyat’s burden..

      Like or Dislike: Thumb up 4 Thumb down 0
  • Henry on Jun 28, 2019 at 2:23 pm

    Already made enough. Time to cash-out.

    Like or Dislike: Thumb up 2 Thumb down 0
  • cant wait to know more on the non peak rate and which hours.

    wishlist:
    50% on none peak hour
    free during off peak and weekend.

    Like or Dislike: Thumb up 2 Thumb down 1
  • OMG… from a private own to GLC!!. A bumpy road ahead

    Like or Dislike: Thumb up 6 Thumb down 0
  • skodamalaysia on Jun 28, 2019 at 3:12 pm

    How about ?

    1) Duke
    2) Besraya
    3) Akleh
    4) MEX
    5) Guthrie

    U/C

    6) SUKE
    7) DASH
    8) West Coast Expressway (WCE)

    Like or Dislike: Thumb up 4 Thumb down 0
  • It’s good to hear that. Even though it’s not totally free as stated in Pakatan Manifesto but at least Pakatan is trying hard to fullfill the 1st stage of the toll matter. Asalkan kerajaan sanggup cuba peringkat pertama utk meringankan beban toll pada rakyat…..I’m ok. All need to be step by step. Bagus!

    Like or Dislike: Thumb up 0 Thumb down 3
  • John Doe on Jun 29, 2019 at 1:58 pm

    Of course such a high offer of 2/3 of market cap ! Stupid offer and later sure the maintenance of the highway will be an issue , the offer price can already take over 50% of Gamuda in the market , stupid finance valuation work by lousy finance guy

    Like or Dislike: Thumb up 1 Thumb down 0
    • jane doe on Jul 01, 2019 at 9:20 am

      The concessionaire playing smart by lobbying for bigger mega projects mayb.. On the other hand, the gomen fall for it for the sake publicity to mencapatikan it’s janji.. poor management of rakyat’s money..

      Like or Dislike: Thumb up 1 Thumb down 0
  • Mr. Octopus on Jul 01, 2019 at 5:16 pm

    Anyone expecting 100% toll free roads, please build your own roads lol

    Like or Dislike: Thumb up 0 Thumb down 0
    • Spin Too Much on Jul 01, 2019 at 6:20 pm

      So meaning Pakatan should build roads parallel to our tolled highways, because they still have a promise they must fulfill.

      Like or Dislike: Thumb up 0 Thumb down 0
 

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