Monday, 24 June 2019
Sprint Highway takeover 'positive' for company, says minority shareholder
24 June 2019
Kumpulan Perangsang Selangor, which owns 20 percent share in the Sprint Highway, said Putrajaya's bid to take over the tolled-road would be positive for the company.
“The proposed acquisition of Sprint by Finance Ministry is undoubtedly a positive corporate development for Perangsang Selangor.
"Monetising the non-core asset will position us a step closer to moving in the intended direction and ensuring the strategic business alignment at the group level.
"This will further streamline our effort in growing the core businesses, allowing us to focus on a tighter scope of activities, consistent with our business aspiration and future business direction," Kumpulan Perangsang Selangor managing director Ahmad Fariz Hassan (above) said in a statement.
Kumpulan Perangsang Selangor is majority-owned by the Selangor government.
The remaining shareholders of the Sprint Highway are Gamuda Bhd (30 percent) and Lingakaran Trans Kota Holdings Bhd (Litrak) (50 percent).
Among the major shareholders of Litrak are Gamuda (43.6 percent), Amanahraya Trustee Berhad (17.5 percent), Skim Amanah Saham Bumiputera (7.7 percent) and Employees Provident Fund (5.8 percent).
Sprint is one of four highways the government was seeking to take over in a bid to restructure the existing toll system.
Ahmad said the takeover will still be subjected to shareholders' approval and consent of Sprint Holding's creditors.
"Given the anticipated equity value of Sprint being at approximately RM870 million, with 20 percent effective equity interest, Perangsang Selangor’s share of the anticipated equity value stands at RM174 million," he said.
He said the deal is expected to be completed by Dec 31 or on a mutually agreed date.
"Not only will this profitable divestment lead the company to provide greater focus on and unlocking the full potential of its core investments, but it will also help satisfy Perangsang Selangor’s future business and financial goals," he said.
