KUALA LUMPUR, April 8 — The proposal to acquire four highway concessionaires for RM5.48 billion aims to minimise the duration of the concession extension required before returning the concessions back to Putrajaya once it has fully repaid its debts, said the shareholders and board of Amanat Lebuhraya Rakyat Bhd .
“Notably, as the existing vendors of the concession companies are commercial entities in nature, such a ‘non-profit’ orientation is not viable under the current ownership structure. Hence, the proposal is for ALR to acquire the concession companies,” ALR said. It said that with the dedicated cash flow profile, it expects a strong credit rating, allowing it access into the capital markets to fund the acquisition of the highways, which includes the repayment of existing debt.
“Given our personal conviction and belief on the merits of the proposal, where the country and its rakyat would stand to reap the benefits as elaborated above, we have each voluntarily agreed to serve and assume such roles at ALR, which will act as the private sector intermediary to facilitate the transactions,” it said.
Once the debts are fully paid, ALR said it is required by the government to dedicate ALR’s residual surplus, if any, to the continuing maintenance of highways, and/or to the improvement of urban mobility. It said it could result in higher toll charges, which lead to higher financial burden on highway users.
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