The concession holding companies of LDP, Kesas, Sprint and Smart Tunnel highways have each accepted their conditional letter of offer from Amanat Lebuhraya Rakyat (ALR), which wants to takeover the ownership of the highways. Gamuda, the giant behind the four highways, announced that the companies delivered the written acceptances on Monday.

In a filing with Bursa, reported by Bernama, Gamuda said each of the offers has been given by ALR on a standalone basis and is mutually exclusive. “Each concession holding company expects to commence separate negotiations with ALR to finalise the terms and conditions of the respective definitive agreements for the proposed disposals,” it said.

Gamuda said the execution of the definitive agreements by each company with ALR shall be subjected to completion of due diligence exercise on each expressway concession company and approval by relevant regulatory authority for each offer to the satisfaction of ALR.

The agreements are also subjected to the execution by each company based on terms and conditions to be approved by ALR, approval of an income tax exemption and stamp duty exemption from the government and the requisite shareholders’ approvals of the respective shareholders.

Earlier this month, Gamuda received the offer for ALR to acquire its stake in the four companies – which is 70% in Kesas, 51.6% in Sprint; 43.2% in Litrak (LDP) and 50% in Smart – for a total of RM2.33 billion. The total enterprise value is RM5.48 billion. Separately, Kumpulan Perangsang Selangor (KPS) said that its 20% associated company, Sprint Holdings, has accepted the ALR offer.

Before this, Gamuda’s deputy group MD Mohammed Rashdan Mohd Yusof said that Klang Valley motorists stand to save RM5 billion from the government’s proposal to restructure the four toll concessions, which includes the promise of no toll fare hikes for the rest of the concession periods. It’s a win-win, as Putrajaya will also save at least RM4.3 billion of compensation to highway operators when scheduled toll fare hikes don’t happen.

The Gamuda exec also says that the proposal will also see the shortening of concession periods, as ALR is obligated to redeem its funding (sukuk) as soon as it can, returning ownership of the four highway concessions to the government after.