Karongsa makes RM5.2b offer for 100% stake in PLUS

Karongsa makes RM5.2b offer for 100% stake in PLUS

New suitors have surfaced for highway concessionaire PLUS Malaysia Berhad, now with Tan Sri Halim Saad and Datuk Wong Gian Kui the latest in line with an offer for RM5.2 billion, The Star reports.

Halim had previously made a bid for PLUS, in which he wrote to works minister Baru Bian via Karongsa Private Capital Sdn Bhd to propose the setting up of a highway trust company for the takeover of all tolled roads in Malaysia, the daily reported.

“I intend to undertake this offer with Wong, a prominent businessman, who currently sits on the board of Insas Bhd, Inari Amertron Bhd, Ho Hup Construction Co Bhd, SYF Resources Bhd and Yi-Lai Bhd,” Halim wrote in a letter dated October 11 sighted by StarBiz. Addressed to the works minister, both Halim and Wong said the offer was to buy the entire equity stake of PMB, or 51% of the equity held by Khazanah Nasional Bhd, according to the report.

The RM5.2 billion offer appeared to be for the 100% stake in the highway concessionaire, and the post-takeover PLUS will offer a 25% discount on toll rates with the concession period remaining as before, to end in December 2038, said Halim.

Karongsa makes RM5.2b offer for 100% stake in PLUS

Halim and Wong, via Karongsa Private Capital will be the fifth interested party for the takover of PLUS, The Star reported, following a RM3 billion cash offer from Widad Business Group Sdn Bhd for the purchase of equity portions of UEM and the Employees Provident Fund (EPF).

It was during Halim’s tenure as head of UEM Group and Renong Group when the company secured a RM3.4 billion contract to build PLUS, The Star reported, and Halim now returns in a new capacity in his latest bid for the highway concessionaire.

The Malaysian government is also considering the possibility of taking over PLUS itself, though it is also open to all proposals from the private sector, finance minister Lim Guan Eng said earlier this week. Meanwhile, Maju Holdings also offered a revised proposal for its bid to acquire PLUS at an enterprise value of RM34.9 billion, which includes debt outstanding to bond holders, as well as an offer to reduce tolls by 25% to 36%.

Earlier this month, a RM3 billion offer came from Malaysian-led, Hong Kong-based RRJ Capital for the acquisition of PLUS, though this was also followed shortly thereafter by a response from Khazanah Nasional stating that it has no plans to sell PLUS, and that all offers from local and foreign entities had been rejected.

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Mick Chan

Open roads and closed circuits hold great allure for Mick Chan. Driving heaven to him is exercising a playful chassis on twisty paths; prizes ergonomics and involvement over gadgetry. Spent three years at a motoring newspaper and short stint with a magazine prior to joining this website.

 

Comments

  • vVivi Zurianti on Oct 17, 2019 at 6:35 pm

    I am sure there will be more offer, exceeding 5 billion even.

    Why?

    This is a “100% guaranteed untung” business. Proven model to make money.

    Don’t believe? Just ask other toll-highway concessionares in Malaysia.

    Heck, I would even make offer to PLUS if I am a multibillionaire….

    Like or Dislike: Thumb up 9 Thumb down 0
    • Gabriel on Oct 18, 2019 at 2:49 pm

      If this is how Malaysia Baru going to be, I will vote Malaysia Lama back in.
      EPF strategically invested in PLUS during Najib’s tenure so that us working Malaysian can have a secure future, having money in EPF for us to survive in our twilight years. What is the point of selling without having any plan to safeguard the future of us working Malaysian? If they sell PLUS, what are the other assets that they plan to buy or invest in to offset the loss generated from selling PLUS? NONE!
      I will not accept on how they are treating the rakyat. The focus should be enriching the rakyat and NOT enriching their cronies and foreign allies. This has to stop, please.

      Like or Dislike: Thumb up 15 Thumb down 1
  • Andrekua on Oct 17, 2019 at 7:15 pm

    Government should just buy it themselves and create a SPV to manage it. Doing so would allow government to alter the highway from time to time to better serve the people. Since NSE is the only backbone for western Malaysia traffic, it’s only beneficial for the government to control it instead of handling it over to private sector yet again. Why should we hand over these monopoly business over? Just look at the numbers of bids, and you’ll know that this is not an offer that could easily come in lifetime. The chance to own a monopoly business in Malaysia is no joke.

    Like or Dislike: Thumb up 4 Thumb down 2
    • Smoke Gets In My Eyes on Oct 18, 2019 at 3:19 pm

      They already have, its called Khazanah. This buy/sell is just smoke and mirrors from PH to pay off more cronies. In fact, Government already owned PLUS in totality.

      Like or Dislike: Thumb up 5 Thumb down 2
  • maslan on Oct 17, 2019 at 8:20 pm

    Halim Saad should just buy, then abolished tol….

    Like or Dislike: Thumb up 7 Thumb down 1
  • Untung Manyak Wang on Oct 17, 2019 at 8:23 pm

    PLUS 5052, 2010 yearly untung bersih 1.36b. :p

    Like or Dislike: Thumb up 1 Thumb down 0
  • Gabriel on Oct 17, 2019 at 11:50 pm

    There goes my epf dividend…
    So sad…

    Like or Dislike: Thumb up 10 Thumb down 1
  • Crony on Oct 18, 2019 at 12:56 am

    KA-CHING! KA-CHING! KA-CHING! time is back baby!!!! Come to papa!

    Like or Dislike: Thumb up 6 Thumb down 1
  • with so many offers coming.. looks like the tolls are a big cash cow.. government should just it back..

    Like or Dislike: Thumb up 1 Thumb down 0
  • sam123 on Oct 18, 2019 at 8:55 am

    Buy buy buy. Business tak ada untung, tak ada orang mahu buat. Sudah beli, tunggu tempoh tamat.

    Like or Dislike: Thumb up 1 Thumb down 1
  • John Doe on Oct 18, 2019 at 9:43 am

    Suggestion to PT.
    Quality, Value and Credibility of articles.
    Please improve by,
    1) Stick to automotive
    2) Abstain from politically motivated articles.
    Politically motivated articles are those that is immaterial. Immaterial because it is not implemented, it is not studied/ still studying. Unethical because these articles are created to create a false sense of progress/ achievement when in a fact there isn’t.

    We have the mainstream media to create smoke screens, Paultan doesn’t need to rush to join the bandwagon.
    IF you still decide to do so, please create another called PaulTanKini.com

    Like or Dislike: Thumb up 10 Thumb down 14
    • tiadaid (Member) on Oct 18, 2019 at 11:20 am

      Are we living in a draconian country? What gives you the right to deny others their freedom of speech?

      In any case, this article fits the requirement because it’s an automotive-related news. Without roads where do cars drive?

      Like or Dislike: Thumb up 11 Thumb down 7
      • John Doe on Oct 18, 2019 at 11:52 am

        Strong words small mind.
        What does my opinion have to do with “Draconian Rule”? and how is my opinion impeding freedom of speech? Did I tell PT to shut up? Did I say do not post about the highways?
        You read fast, but you only capture the words that fit your vocab to attack me or anyone showing disagreement with PT. Perhaps you can write your own article for PT, at least you’ll get paid for it being PT’s spokesperson.

        Like or Dislike: Thumb up 6 Thumb down 7
        • tiadaid (Member) on Oct 18, 2019 at 2:32 pm

          You wrote:

          1) Stick to automotive
          2) Abstain from politically motivated articles.

          And have the cheek to ask “how is my opinion impeding freedom of speech? Did I tell PT to shut up?”

          The one with the small mind is YOU.

          Like or Dislike: Thumb up 4 Thumb down 8
  • Realist on Oct 18, 2019 at 10:18 am

    I’ve always wondered how profitable is PLUS and now it’s definitely confirmed it’s a Cash Cow! If the builder of PLUS highway considers it a wise decision to buy it then I think it’s better in the hands of us EPF contributors and the government. Better to get good EPF dividends every year through our investments..

    Like or Dislike: Thumb up 4 Thumb down 0
  • TollsRUs on Oct 18, 2019 at 11:48 am

    This guy made the govt. bail him out few times now dare to show his face! I wonder if he don’t make profits the govt. have to bail him out again. Sudah…la Halim Saad don’t create problem for the nation again.

    Like or Dislike: Thumb up 4 Thumb down 0
    • Not Toyota Fan on Oct 18, 2019 at 2:58 pm

      Ini macam maybe Tajudin Ramli will crawl out of the wood work to put his bid in too. Later can ask ask ask gomen for more bail outs, just like the good old days back in MAS.

      Like or Dislike: Thumb up 5 Thumb down 0
 

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