Takeover of PLUS Has To Benefit Rakyat
(Utusan Malaysia Translation by TnT)
KUALA LUMPUR, 29 Dec. – PLUS Expressways Bhd needs to be cautious and put national interest first in reviewing other bids to takeover the company.
Senior Manager of TA Investment Group Bhd Alsetdek Al Haj Ali said PLUS has to be mindful to ensure the takeover deal of the national strategic asset is not solely based on the valuation of the offer.
Alsetdek added that the view of the toll concessionaire has to be parallel to the Prime Minister Datuk Seri Najib Tun Razak’s vision and national agenda to put the people’s interest first.
He said the effort to develop basic infrastructure should be borne by the government as it is part the government’s responsibility to develop the country.
In addition, the issue revolving on the future of PLUS concerns the vast highway network that connects the people of this country, he added.
“Therefore, any effort by other parties, i.e. outsiders to acquire PLUS should not be considered and the government should take a firm stance on this,” he told Utusan Malaysia.
He was commenting to the latest development on the takeover of PLUS Expressways by Jelas Ulung Sdn Bhd at RM26 billion, excluding the offer to acquire its liabilities at a further RM 12 billion.
Alsetdek said, UEM Group Bhd and the Employees Provident Fund should not revise their offer price just to rival the offer made by Jelas Ulung as it would suggest that PLUS is simply up for grabs.
“In my view, the value of RM26 bilion or RM12 bilion is insignificant because what is important is for the rakyat to know the real agenda behind the offer and their intention to acquire PLUS” he added.
According to him, if Jelas Ulung does not have any hidden agenda, how could the company offer terms that are not only attractive but is also extraordinary.
Jelas Ulung’s terms of offer include amongst others no request for any tax waiver, compensation or subsidies from the government, as well as guaranteeing there will be no further toll increases.
In fact, he added if Jelas Ulung is able to offer such terms, it is also possible for the Government to do the same.
He went on to say, although Jelas Ulung has made various claims on their ability to takeover PLUS, but in actuality the new company has only been in operation for a month and there is no track record on the company’s performance.
“I’m sure that the rakyat would not agree that any two dollar company to easily make known of their interest to own PLUS. PLUS is not only a network of highways but it also entails other aspects such as safety, maintenance, linkage and toll rates,” he explained.
Commenting on the high offer price by Jelas Ulung, Alsetdek said, the higher price does not necessarily mean the company is serious in wanting to take over PLUS or otherwise.
However, he questioned why Jelas Ulung does not want to invest in other new investments that are more competitive since it has strong financial support by the subsidiary of Bank of China.
“The answer is simple, PLUS is a cash rich business and strategic asset. We should not forget that this strategic asset determines political power.
“Therefore, the government has no choice but to protect PLUS if they do not want to lose it,” he said. - TnT
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