Kumpulan Perangsang Selangor To Pocket RM180.8 Million From Sprint Highway Sale

Kuala Lumpur 240518 Kumpulan Perangsang Selangor CEO Ahmad Fariz Hassan During Kumpulan Perangsang Selangor Bhd Agm/Egm (pic by : Ismail Che Rus)

Kumpulan Perangsang Selangor Berhad which has 20% stake in System Penyuraian Traffik KL Barat Holdings Sdn Bhd has confirmed that it has received a Letter of Offer from Amanat Lebuhraya Rakyat Berhad to acquire the entire equity interest of the company which owns the Sprint highway.

This has been the biggest corporate exercise this year with the total acquisition of 4 highways including Litrak, LDP, and Smart by ALR a public limited company that has the Government of Malaysia’s mandate for the proposed restructuring of the toll roads. KPS said that for the 20% interest and the offer consideration at an enterprise value of approximately RM1.8 billion, the anticipated equity value of SPRINT is RM904 million, of which KPS’ share would be RM180.8 million.

The offer is conditional upon satisfactory due diligence findings and approvals from relevant parties, including the Government, authorities, and shareholders. It added that the offer will be valid until 5.00 pm on 30 April 2022. In addition, a definitive agreement between SPRINT Holdings and ALR shall be entered into no later than 31 July 2022 or another extended date that is mutually agreed upon by both parties.

KPS’ Managing Director/Group Chief Executive Officer, Ahmad Fariz Hassan, said: “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.”

Upon the execution of the DA, the proposed acquisition shall be subject to the following conditions precedent, 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.

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