Plus is now looking at taking over SILK highway under SILK Holdings Bhd.
SILK Holdings operates only one highway and has three substantial shareholders: Johan Zainuddin, Abdul Rahman Ali and former Proton Holdings Bhd chairman Datuk Mohd Azlan. The three individuals had direct and deemed interests of 36.61%, 23.6% and 20.04% respectively in SILK Holdings.
Market sources say the substantial shareholders in SILK Holdings are likely to welcome the idea of selling the company’s highway concession if the price is right.
It is believed that PLUS has sent out some feelers to the management of SILK Holdings.
Sources say PLUS motivation to explore the takeover of SILK highway assets is to expand its earnings and spare the government from having to commit to the scheduled toll rate increases of highway concessions.
It is worth nothing that the SILK highway was due for a toll rate increase in 2010, which did not happen.
Issues of compensation for delayed toll rate increases were the reason the government had in 2010 decided to privatize PLUS.
The SILK highway has a 33 year concession which runs until 2037.
From : hongwei85.blogspot
Mkt cap 160.81 M