Litrak, Sprint Holdings agree to MoF Inc’s takeover offer

03 Jul 2019 / 19:23 H.

KUALA LUMPUR: Lingkaran Trans Kota Holdings Bhd (Litrak) and Litrak’s associate company Sistem Penyuraian Trafik KL Barat Holdings Sdn Bhd (Sprint Holdings) have resolved to accept the government’s offer to take over Damansara-Puchong Expressway (LDP) and the Sprint highway.

The boards of the two companies had “unanimously found (the offer) fair and reasonable”, Litrak said in a filing with Bursa Malaysia today.

The Minister of Finance Inc (MoF Inc) last month offered to buy Litrak’s wholly-owned subsidiary Lingkaran Trans Kota Sdn Bhd (the concessionaire for LDP) for RM2.47 billion and 50%-owned Sprint Holdings for RM1.98 billion, less any outstanding indebtedness of both companies. Both offers are inter-conditional on each other and are inter-conditional on the offers for Shah Alam Expressway (Kesas) and the Stormwater Management and Road Tunnel (Smart).

Gamuda Bhd and Kumpulan Perangsang Selangor Bhd had earlier announced they were in favour of accepting MoF Inc’s offer for their 30% and 20% equity interest, respectively, in Sprint Holdings.

Gamuda has also resolved to accept MoF Inc’s offer to take over Kesas and Smart.

In today’s statement to the exchange, Litrak said it and Sprint Holdings expected to begin negotiations with MoF Inc to finalise the terms and conditions of the agreements for the proposed purchase of their toll highways and to seal the definitive agreements with the special-purpose vehicle owned by MoF Inc by Aug 30.

The company said this was subject to the acceptance of the Kesas and Smart offers, the satisfactory due diligence findings by MoF Inc, and the Cabinet’s approval.

It was reported that the government offered to pay the shareholders of Litrak Holdings and Gamuda RM6.2 billion to take over the four tolled highways. — Bernama

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