With the major restructuring of tolled highways made by the Government, Kesas, LDP, Sprint, and Smart have been proposed to be acquired by Amanat Lebuhraya Rakyat Berhad which has the government’s mandate to take over the highways and operate them as non-profit, Prime Minister Ismail Sabri announced that these highways will not see toll hike until their concessions expire.
Simultaneously, each of the following associated companies and the joint venture company of Gamuda had on 2 April 2022, received a conditional letter of offer from ALR for the following acquisitions:
(i) Sistem Penyuraian Trafik KL Barat Holdings Sdn Bhd (“SPRINT Holdings”), Gamuda’s 51.6% associated company, in respect of all the Securities of SPRINT. SPRINT is a wholly-owned subsidiary of SPRINT Holdings;
(ii) Lingkaran Trans Kota Holdings Berhad, Gamuda’s 43.2% associated company, in respect of all the Securities of LITRAK. LITRAK is a wholly-owned subsidiary of LITRAK Holdings; and
(iii) Projek SMART Holdings Sdn Bhd, Gamuda’s 50.0% joint venture company, in respect of all the Securities of SMART
The new owners mandate includes looking after the economic interests of the road users of the targeted highway concessions concerned, and therefore;
(i) ALR must maintain the current toll rates with no further increases, including in any period of extension of the existing concession required to facilitate the success of restructuring; and
(ii) ALR shall accelerate the return of the concession(s) back to the GoM upon full settlement of all of ALR’s financial debts incurred in acquiring the identified highway concession(s) (based on agreed terms).
To facilitate ALR’s mandate as set out above, ALR will channel all available profits and cash surpluses over and above its operational needs, solely to the servicing and (possible early) settlement of its financial debts. In this manner, the full settlement of financial debts would facilitate the concession(s) to be returned as early as possible, thus facilitating the possible abolishment of tolls altogether on these highways.
The government adds that the restructuring of the four highways will also help it save RM4.3 billion in toll subsidies.
