The Government has no plans to divest its stake in PLUS Malaysia Bhd to Maju Holdings, citing risks and uncertainty associated with the takeover exercise.

In a written answer to Hee Loy Sian (PKR-Petaling Jaya Selatan) dated Oct 26, the Finance Ministry said that while the Government welcomed any takeover move, it must meet certain requirements set by the Government.

Maju Holdings executive chairman Tan Sri Abu Sahid Mohamed has made public his company’s intention to acquire PLUS.

The group had also pledged that it would not raise toll fares for 20 years if the takeover exercise materialised.

But the Finance Ministry said the proposed takeover could not be seen solely from the angle of not raising toll charges over several years and low maintenance costs.

“Any takeover plans must be practical so it will not end up like Perwaja, which was privatised only to be shut down later,” the ministry said, referring to the steel manufacturer which required government bailouts to keep it afloat.

“It also needs to meet the needs of the Government and this includes operational and financial capabilities for the north-south highway in the long run,” it said.

In view of this, the ministry said the PLUS takeover must be supported by clear and strong financial sources so that it would be capable of operating amid any economic shock or foreign exchange volatility.

“This is important, so the Government would not have to bail out PLUS if any untoward incident happens.

“The Government, therefore, views seriously the financial standing and capability of a private entity such as Maju Holdings in its takeover bid.

“Due to risks and uncertainty in this matter, the Government has no plans to let go of PLUS’ stakes to Maju Holdings,” it said.

Two shareholders of PLUS Malaysia Bhd - the Employees Provident Fund (EPF) and UEM Group Bhd – have reiterated that they have no intention to sell their stakes in the country’s largest highway concessionaire.

The acquisition plan is believed will cost over RM30bil involving the stakes held by both UEM and EPF.

Source:
courtesy of THE STAR

by Rahmah ghazali

If you have any stories or news that you would like to share with the global online community, please feel free to share it with us by contacting us directly at [email protected]