Prime minister Tun Dr Mahathir Mohamad says the government is looking at solutions to resolve the financial problems plaguing PLUS Malaysia, and that the best choice currently is for Khazanah Nasional – which is the major shareholder in PLUS – to manage the toll concession company to settle its debt, Bernama reports.
“We will see which is the best possible. If Khazanah manages (PLUS), OK, it can resolve the debt issue,” he said. However, he added that the government is also prepared to let go of PLUS if there is a party that is willing to pay a high price to acquire it and assume its debt.
“If there are offers by other people to take over the debts of up to RM30 billion, then it’s a good thing. For the government, we (will) talk with Khazanah,” he said.
Previously, Khazanah MD Datuk Shahril Ridza Ridzuan said the government sovereign wealth fund was not interested to sell its stake in PLUS, which is the biggest toll concession company in the country. It is controlled by the UEM Group – a subsidiary of Khazanah – and the Employees Provident Fund (EPF). The former holds a 51% share in PLUS, with the remaining 49% owned by EPF.
The works ministry has confirmed that the government has received four offers for the takeover of PLUS, with the bidders beinge Widad Group, Maju Holdings, RRJ Capital and Tan Sri Halim Saad’s vehicle Karongsa Private Capital.
The relatively-unknown Widad has made two proposals, the latest being to acquire 100% equity interest in the company for RM5.3 billion, including a compensation waiver of RM3.04 billion and debt assumption of RM30 billion. Meanwhile, RRJ Capital – a Malaysian-led, Hong Kong-based private equity firm – has made a bid of RM3 billion cash to purchase PLUS outright, while businessmen Tan Sri Halim Saad and Datuk Wong Gian Kui have offered RM5.2 billion for PLUS, via Karongsa.
Finance minister Lim Guan Eng has said that companies who wish to acquire PLUS must fulfil the minimum 18% average toll reduction that was announced in Budget 2020.
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PLUS debt? Mana ada debt?! PLUS have been consistently one of the highest earning highways in Malaysia, which is why it is attracting so many prospective buyers. Which business would take on one that has liability of billions?
PM7 you nak tipu siapa?
You want to use gomen money to ‘buy back’ what is already gomen owned and you want to ‘save it from debt’ by overpricing the payout?
You think we’re stupid like PH diehards ke? Don’t try to fool us with this convoluted backroom dealings and lame excuses!!!
PH must be kicked out fast before he can put this plan into motion and by then too late to actually save PLUS from PH!
So right bro. we dun want another 1MDB !!
Ah I made a mistake, at least with 1MDB we got a high tech city. With selling out PLUS only Madey and PH cronies benefit. Rakyat loses.
Yes indeed, Plus has debts but compared to Tabung Haji’s debts amounting to RM19.9 BILLION which had to the transferred to the government for TH to stay afloat, Plus’ debts are chicken feed and quite manageable because of its steady income stream (from us).
PH support or hater aside, your analysis is just plain wrong. a company that consistently make profit, even high profit can be saddled with debts if the business is built on high amount of loans from convertible. the debts of a company is not part of the profit and loss statement and only the interest you paid on the loan is shown as expenses. you need to see the whole financial statement and not just profit alone.
So meaning if PLUS is still making money, it’s not really an indebted company that needs to be rescued as implied by the Government, the same as for 1MDB as well, I see.
I guess since it worked to fool the rakyat with 1MDB, they are just going to try once again with PLUS and if that works, even more government entities are going to be needlessly “rescued” using taxpayer money. See how long can PH continue to fool the rakyat until we cannot take enough and have our own FreeMalaysia movement.
All the monopoly business in Malaysia is losing money, don’t the new government (with same old leader) wonder what has goes wrong? PLUS is own by EPF and Khazanah…which also mean rakyat money! FELDA, Malaysia Sugar, whatever you name it, all losing money! 1 thing that Najib has do it right was, sell off Proton! In less than 2 years time, we see Proton turning profit!!!
it can be making money every year and still have debts if the business is created and built up from the beginning with high debts that are not yet fully paid up. you are also earning salary every year and the salary keep going up, but I bet you still have at least one housing loan that could only be fully repaid 10 or 20 years later..
Was better under Renong’s Halim Saad era BN .
Everything was better under BN. Now jobs are scarce, salaries are low as reported by EPF, cost of living is rising, and we have a government more concerned on vindictive politics & enriching their cronies. No one is taking care of the rakyat which makes us sick & tired of all this crap.
Amen brother! you took the words right out of my mouth.
If PLUS CEO is getting 100k salary a month while the company is ridden with debts while the highway is jammed ask him to go. Not fair to all.malaysians
Why government is looking into PLUS debt? Is a private entity. Is not government priority. KWSP and Khazanah own plus and plus has been providing steady divident. By selling to another company will only prolong the period the people paying tol. Promise of lowering the toll rates by these so call offer is not guarantee. What is guarantee is the current owner where in few years time, plus will settle it’s debt and the asset will be transfer to government. These just another gimmick of haprak government. Promise of free toll.
PLUS debt is manageable. If they can service the debt, they can afford it.
So why the hell do they want to keep selling PLUS?
Stupid Mahathir!
His son need the money to build his international airport in his boondock state