2013-11-05 [ ][ ] Gamuda bidding to take over Kesas highway firm, offers RM875mil

source:[thestar online]

Gamuda bidding to take over Kesas highway firm, offers RM875mil

KUALA LUMPUR: Gamuda Bhd is making a RM875mil bid to buy out three other shareholders in highway concession company Kesas Holdings Bhd. The offer values the highway operator at RM1.25bil.

The construction outfit which currently owns 30% stake in Kesas has issued letters of offer to the three other shareholders – Perbadanan Kemajuan Negeri Selangor(PKNS) which has a 30% stake in Kesas, while Amcorp Properties Bhd andPermodalan Nasional Bhd (PNB) hold 20% stake each.

Kesas is the toll concessionaire for the 35km Shah Alam Expressway under a concession agreement that is valid until Aug 18, 2023.

According to filings with Bursa Malaysia, Gamuda said the purchase consideration would be satisfied in cash. The purchase consideration for PKNS is RM375mil and RM250mil each for Amcorp Properties and PNB.

As at July 31, Gamuda has RM1.23bil in cash and bank balances.

Gamuda noted that if Kesas Holdings declares and pays any dividends or distribution of any form after the offer date and prior to the completion date, the purchase consideration shall be reduced by an amount equivalent to the net amount of such dividends or other distributions made per Kesas Holdings share.

The offer is valid for acceptances until Nov 18.

In an earlier analyst report, Gamuda’s management had indicated that it was in talks with some parties to sell its domestic toll concessions. This includes its 45.5% stake in Litrak, 30% in Sprint and 30% in Kesas.

Hong Leong Investment Bank said in a report in September that the deal to sell Gamuda’s highway assets had fallen through. “Hence, its management is looking at a business trust setup to unlock its value,” it said.