Gamuda, Litrak, IJM top losers this morning on govt plans to take over four highway concessions

25 Feb 2019 / 12:02 H.

PETALING JAYA: Highway operators Gamuda Bhd, Lingkaran Trans Kota Holdings Bhd (Litrak) and IJM Corp Bhd were among the top losers on the stock exchange this morning following news of the government planning to take over four highway concessions.

At 11.09am, share prices of Litrak fell 9.35% to RM4.17, while Gamuda plunged 7.89% to RM2.80 and IJM was 6.53% lower at RM1.86.

The four highways involved in the talks are the Lebuhraya Damansara Puchong (LDP), Sistem Penyuraian Trafik KL Barat (SPRINT), Lebuhraya Shah Alam (KESAS) and SMART Tunnel.

According to a statement by the Prime Minister’s Office, the government has commenced talks with Gamuda to negotiate the acquisition of highway concession on four highways where the company has a majority stake.

The government intends to abolish the existing toll mechanism upon successful takeover of the highways. A congestion charge would be introduced where commuters would only pay the charge which is equivalent to the existing toll for six hours of ‘peak’ period a day.

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