An RRJ Capital-led investor group is offering to acquire Malaysian expressway toll firm PLUS Malaysia Bhd. for 3 billion ringgit, Reuters reported, citing a Sept. 25 letter to PLUS parent and Malaysian sovereign wealth fund Khazanah Nasional Bhd.
Engineering infrastructure and service firm UEM Group Bhd., a subsidiary of Khazanah, owns a 51% stake in PLUS Malaysia. The remaining 49% stake is held by state pension fund Employees Provident Fund, or EPF.
RRJ Chairman Richard Ong reportedly said in the proposed bid that the private equity firm would cut toll rates by 20% across the board upon deal closing.
The buyout proposal would include UEM and EPF's interest in the redeemable convertible unsecured loan stock issued by PLUS Malaysia unit Project Lebuhraya Usahasama, the report noted. The potential deal is subject to a 20-year extension by the Malaysian government of the toll concessions period.
A spokesman for Khazanah told Reuters that the fund has submitted its own proposal to the Malaysian government, which ultimately will have to review such offers. EPF did not answer Reuters' request for comment.
RRJ said in an emailed response to Reuters that it is targeting large companies and major infrastructure investments in Southeast Asia and that it was open to teaming up with Malaysian pension funds and working with the government on projects, without disclosing further details.
As of Oct. 2, US$1 was equivalent to 4.19 Malaysian ringgit.
