Muristek
KPS’ associate receives offer from ALR to acquire entire stake in sprint for RM1.81b
KUALA LUMPUR, April 4 — Kumpulan Perangsang Selangor Bhd’s (KPS) associate company System Penyuraian Traffik KL Barat Holdings Sdn Bhd (Sprint) has received a letter of offer from Amanat Lebuhraya Rakyat Bhd (ALR) to acquire the entire equity interest of Sprint for approximately RM1.81 billion.
KPS currently has a 20 per cent interest in Sprint via its associate company, Sprint Holdings.
In a filing with Bursa Malaysia today, it said the offer would be valid until 5 pm on April 30, 2022 and a definitive agreement (DA) between Sprint Holdings and ALR should be entered into no later than July 31, 2022 or another extended date that is mutually agreed upon by both parties.
It said based on the aforesaid enterprise value, the anticipated equity value of Sprint is RM904 million, of which, KPS’ share would be RM180.8 million.
“With the proposed acquisition by ALR, we are a step closer to the resolution of the restructuring of certain tolled highway concessions. This corporate development is certainly not a loss to the group, as we can focus further on the value creation plans, unlocking the full potential of our core business.
“It shall also support our long-term strategic objective of strengthening the group’s fundamentals and enhancing KPS’ strategic positioning and brand equity in the marketplace,” KPS managing director/group chief executive officer Ahmad Fariz Hassan said.
He said upon the execution of the definitive agreement, the proposed acquisition shall be subjected to the conditions precedent (CP), to be satisfied within a certain period from the execution date, which is to be agreed upon between parties in the DA.
The CPs include evidence that approval from the existing lenders of Sprint and/or Sprint Holdings for the refinancing of their indebtedness shall have been obtained and a fund-raise by ALR to make all payments to complete the proposed acquisition as per the terms of the DA shall have been successful.
Shares of KPS, which was suspended earlier, will resume trading at 9 am tomorrow, April 5, 2022. — Bernama