Maju offers 36% toll drop in revised PLUS takeover

Maju offers 36% toll drop in revised PLUS takeover

Maju Holdings is offering a reduction in tolls between 25% to 36% under an amended proposal to the Malaysian government for the takeover of PLUS, The Star reported. The company plans to bear in full the shortfall from the proposed toll reduction and it is not seeking financial compensation from the government for this, it said in a statement.

“The government currently owes PLUS approximately RM2.7 billion in toll compensation and if Maju Holdings takes over PLUS, we are pleased to inform that we will no longer hold the government responsible for these debts,” the company said, adding that it would absorb the compensation sum instead.

“With this latest offer that we have submitted to the government, existing shareholders of PLUS will benefit from an estimated total equity Internal Rate of Return of approximately 16%. This represents a return that far surpasses the cost of equity for a majority of other toll road concessions, both globally as well as across Southeast Asia,” the statement continued.

Maju offers 36% toll drop in revised PLUS takeover

Maju stated that it is also committed, as part of its proposal, to invest about RM5.3 billion for various ‘much needed enhancements’ including the lighting up of the entire stretch of the highway, pointing out that its operational track record in managing toll roads speaks for itself.

“We have successfully operated the MEX highway in a highly cost effective manner compared with PLUS toll roads that should benefit from economies of scale. In fact, we have one of the lowest costs per kilometre in the country. As such, we are confident we will be able to reduce maintenance costs for PLUS,” it said.

Maju also reiterated that its enterprise value to purchase PLUS including debt outstanding to bond holders amount to RM34.9 billion. “This purchase consideration is a reflection of the true and fair value of this company and its assets, taking into consideration our intention to provide Malaysian road users with tangible discounts,” it said.

Malaysian-led, Hong Kong-based private equity firm RRJ Capital made a RM3 billion bid earlier this month for the purchase of highway concessionaire PLUS Malaysia, followed by a response from Khazanah Nasional stating that all takover offers had been rejected. Prime Minister Tun Dr Mahathir Mohamad revealed thereafter that the government is willing to review any bids for the purchase of PLUS Malaysia.

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Comments

  • Yeah right. Your MEX2 apa progress for past six months? A snail moves faster.

    Like or Dislike: Thumb up 13 Thumb down 1
    • alldisc on Oct 10, 2019 at 8:31 am

      Let us keep PLUS as it is now let the govt pay the 2.7 billion ringgit it owes as compensation. Money will goes back to the government and back to rakyat too.

      It’s nothing to worry just like money going from left pocket to right pocket. It will be there.

      Like or Dislike: Thumb up 4 Thumb down 0
      • panjang on Oct 10, 2019 at 12:39 pm

        I dont mind left pocket to right pocket.
        I am worried what happen along the waist as some cash note might be dropped while.the hand is travelling along the waist area.

        Like or Dislike: Thumb up 4 Thumb down 0
  • pakat on Oct 09, 2019 at 7:39 pm

    Check whose behind Maju Holdings & geng,

    Like or Dislike: Thumb up 14 Thumb down 1
    • Angry Voters on Oct 09, 2019 at 9:34 pm

      Pakat2 Harapkan untung dr wang rakyat. Inilah PH yg diharapkan oleh rakyat?

      Like or Dislike: Thumb up 12 Thumb down 4
    • Ex VGM staff on Oct 10, 2019 at 8:34 am

      They had projected a huge calculated revenue based on new car registration each year. That is half a million units every year or 5 million new cars in a period of 10 years.

      Big profit even with no increase in toll charges

      Like or Dislike: Thumb up 0 Thumb down 1
  • Lol.. rm2 Naik to 3.50.. now wanna takeover plus.. syukur if tak Naik 75%

    Like or Dislike: Thumb up 10 Thumb down 0
  • I saw Maju being mentioned in Harapan’s manifesto. Something to do with highway takeover.

    Cross-eyed Abu can’t even keep his Maju Junction running, let alone run a highway.

    Leave PLUS in the hands of taxpayers via EPF. Everybody can benefit.

    Like or Dislike: Thumb up 25 Thumb down 0
  • Not Toyota Fan on Oct 10, 2019 at 12:31 am

    Got prawn behind rock.

    Just don’t trust these crony companies.

    Like or Dislike: Thumb up 4 Thumb down 0
  • Manifesto Dicapati on Oct 10, 2019 at 1:28 am

    But PH takeover offers 100% toll drop lel. Aiyak, that was fake promise in fake manifesto.

    Like or Dislike: Thumb up 11 Thumb down 5
    • Capati pun Sodap on Oct 10, 2019 at 12:41 pm

      Havent we all live in fakeness all these while regardless who runs the show.

      Like or Dislike: Thumb up 2 Thumb down 0
      • Jeremy on Oct 10, 2019 at 4:20 pm

        Yes bro. Mesians thought they voted for change but all they did is vote for fakery and silap mata acts.

        Like or Dislike: Thumb up 2 Thumb down 1
  • john doe on Oct 10, 2019 at 3:11 am

    and we will have path hole and broke down lorries everywhere along the highway without maintenance…

    Like or Dislike: Thumb up 2 Thumb down 1
  • Amran on Oct 10, 2019 at 7:58 am

    Pakatan harapan naik, tol dimansuhkan..

    Like or Dislike: Thumb up 8 Thumb down 2
  • vVivi Zurianti on Oct 10, 2019 at 9:23 am

    With such cronies and the gang, its all about sucking tonnes of money from rakyat…..

    Sorry la, Maju. No deal for you

    Like or Dislike: Thumb up 2 Thumb down 0
  • Asaif Barkiya on Oct 10, 2019 at 12:53 pm

    MEx does not have the credibility more so with the man at helm Abu Sahid.He cannot boast MEX with profile of only 40km stretch and compare Plus with total stretch of 1200km.A wrong arithmetic and equations.Abu Sahid ,the man once behind Perwaja failed privatization has asked for Federal Government bailout and so did he for Maju Junction bailout by Tabunghaji.And now he’s at it again for Plus.Maju Holding is a lousy and failed entity more so at high stake Merger and Acquisition.

    Like or Dislike: Thumb up 7 Thumb down 0
  • Mr. Octopus on Oct 10, 2019 at 2:26 pm

    Abu Sahid, u got RM1bil grant and operation license from gov along wto build and operate MEX and then you sold it for RM600mil profit. Tun M was right to condemn you, putting you in the same league as AP holders. So I guess you already have a buyer in place for PLUS is it??…

    Like or Dislike: Thumb up 3 Thumb down 0
 

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