Shareholders of Gamuda and Lingkaran Trans Kota Holdings (Litrak) have given their approval for the disposal of their highway assets to Amanat Lebuhraya Rakyat (ALR), Gamuda stated in an announcement.
In April this year, the concession holding companies for LDP, Kesas, Sprint and Smart Tunnel highways each accepted their conditional letter of offer from ALR, which planned to take over ownership of the highways.
“The sale of was met with 99% approval in the extraordinary general meeting of the group on July 27 and Litrak on August 5. The share sale and purchase agreements were successfully executed with ALR, with all conditions under the conditional letter of offer met,” Gamuda said according to the report.
Kesas is owned 70% by Gamuda, with the remaining 30% by Perbadanan Kemajuan Negeri Selangor (PKNS). Meanwhile, Projek Smart Holdings (Smart) is a 50:50 JV between MMC Corp and Gamuda.
Litrak hold 50% equity in Sprint, with Gamuda holding 30% and Kumpulan Perangsang Selangor (KPS) with 20%. Lebuhraya Damansara-Puchong (LDP) is wholly owned by Litrak, which in turn is 42.8% controlled by Gamuda, therefore Gamuda’s effective interest in Sprint in 51.4%, The Edge Markets wrote.
In April, deputy group MD of Gamuda Mohammed Rashdan Mohd Yusof said that Klang Valley motorists stand to save RM5 billion from the Malaysian government’s proposal to restructure the four toll concessions, which included the promise of no more toll fare increases for the remainder of the concession periods. The restructuring will also save the government RM4.3 billion in subsidies.