ALR plan to acquire Klang Valley highways gets thumbs up from financial institutions

[superadmin]

KUALA LUMPUR – Amanat Lebuhraya Rakyat Bhd (ALR) has received positive responses from financial institutions for its plan to acquire four major highways in the Klang Valley given the sound business of the concessionaires, a source said.

The source close to the proposal, which will see a trustee taking ownership of the highways and keeping toll rates unchanged till the end of their concessions, said ALR has not only convinced the financial institutions on the viability of the proposal, but is now feeling rather bullish that any bonds or sukuk to be issued would good ratings and be well received.

ALR has offered to entirely acquire the Shah Alam Expressway (Kesas), Western Kuala Lumpur Traffic Dispersal System (Sprint Highway), Damansara-Puchong Expressway (LDP), and Stormwater Management and Road Tunnel (Smart), for an aggregate enterprise value of RM5.48 billion.

“The financial institutions involved have deemed that the business model is sound.

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