Monday, 27 September 2010

Profit making PLUS to be sold by the Government?

Very exciting post/scoop from blogger Salvatore_Dali recently, one that would light up the hearts of many us Malaysians, I hope the BN Government would do the right thing:

EPF To Buy PLUS Expressways?

Is this a scoop? THis was reported in an exciting newish blog named Taikuns & Taikors. It now looks like sensibility has won the day with EPF entering the fray to buy PLUS Expressways. I can so no better solution to that. This toll system is too ingrained to be in private hands. At least now, all profits will accrue to EPF holders.

Some twelve million EPF members are in for a windfall as the huge profit stream from Plus will directly boost yearly interest payout to exceed the current average of five percent, though earlier MMC Corp and Asas Serba proposals to buyout Plus are rejected.

The government has given the nod for the Employees Provided Fund to acquire Malaysia's largest tolled highway operator, Plus Expressways Bhd, putting an end to the attempts of two private companies to take over the Khazanah-owned entity.

EPF’s late-entry acquisition pips the proposals made separately by Tan Sri Syed Mokhtar Al-Bukhary’s MMC Corporation Bhd and Tan Sri Halim Saad’s Asas Serba Sdn Bhd to buyout Plus through Khazanah Nasional Bhd, which directly owns 16.74% of Plus and has an indirect stake of 38.51% via UEM Group.

Raising the roughly RM11 to RM12 billion to pay for the 55% of Plus shares now in Khazanah’s hands is considered as “loose change” as EPF has RM402 billion in total asset allocation as at March this year and would not require the pension fund to resort to the debt market.

read more here.

Salvatore_Dali's post was dated 25 September 2010 and today's news from Bernama looks encouraging:

Muhyiddin: Government yet to decide on sale of PLUS Expressways

Kalau tidak ada angin masakan pokok bergoyang kan, anyway I hope the Government will really give the nod to KWSP/EPF to acquire PLUS instead of giving it to individual owned entitities such as Asas Serba or MMC or the like. With KWSP/EPF, 12 million of its Malaysian Members will benefit directly plus many more members of their immediate family.

It will be Good for Malaysians, Great for the BN Government.

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