EPMB Jun 2012

Maju Holdings Sdn Bhd proposed rm1.7 billion sale of MEXX to EPMB appears to be in limbo. It has emerged that Maju Holdings has yet to obtain the government’s proposal to sell the highway concession three months after the proposal was announced. The company and the vendors had mutually agreed to extend the period for the fulfillment of the conditions precedent to the acquisition agreement for a further 60 days to Aug 14 2012 from June 15 2012.

 

Tan Sri Abu Sahid has a 91% stake in Maju Holdings which in turns owns 96.8% stake of MEX. The bone of contention is that Maju Holdings was given rm977 million in government funding for the construction of the elevated portion of the highway that runs between KL and Sepang.

 

The opposition is that the proposed sale. It said the government should buy back the concession shortly after Maju Holdings announced its plan. Several matters pertaining to policies on the highway concession are still being studied by the government.

 

Maju Holdings stands to make a profit of over rm600 million if the proposal goes through and Abu SAhid would be left with an indirect interest of 18.2% stake in MEX through a special purpose vehicle.