Two elected representatives have welcomed the government's rejection of a private firm's takeover bid for Lebuhraya Utara Selatan (PLUS), saying it is the right move and in the people's best interests.
Anuar Manap, MP for Sekijang, Johor, expressed confidence that the government had made a detailed study in rejecting the offer from Idaman Saga Sdn Bhd, which is owned by by former Renong Bhd Executive Chairman Tan Sri Halim Saad.
Minister in the Prime Minister's Department Datuk Seri Abdul Wahid Omar, when announcing the government's decision in Parliament on June 11, said Idaman Saga had presented inaccurate facts and assumptions and promised not to raise the toll rates until the concession ends in 2038.
"As announced by the minister, the assumptions forwarded by Idaman Saga are inaccurate. We all know that in any business transaction, the buyer is obligated to provide accurate information.
"In fact the government has no intention of selling PLUS because it is now owned by two government agencies, namely UEM Group and the Employees Provident Fund (EPF)," he said when commenting on the decision.
This is the second time Halim's takeover bid for the country's largest highway operator has been turned down.
In 2009, Halim, through one of his companies Jelas Ulung Sdn Bhd, offered RM26 billion for PLUS, but the bid was rejected after the company failed to settle the RM50 million deposit within the two-week deadline.
Anuar pointed to Abdul Wahid's impeccable capability and background. Before his appointment to the Cabinet last year, Abdul Wahid was President and Chief Executive Officer of Maybank, the country's biggest banking group, and was previously Managing Director and Chief Executive Officer of UEM Bhd as well as Executive Vice President of PLUS Expressways Bhd.
"No government in the world will entertain any proposal or concept paper that is based on inaccurate information and assumptions to take over important assets of the country like PLUS just through a casual meeting.
"I agree that the government has made the best decision in retaining PLUS as a national asset in the best interests of the people," he said.
Meanwhile, Sulaiman Razak, State Assemblyman for Permatang, Selangor, described the offer as "irrelevant."
"The offer is incomplete, it only stated the benefits the takeover will bring. And yet the bid is for a company that is a critical national asset and a backbone of the country's transportation system.
"If from the start the concept paper was incomplete, should the government have considered (the offer)?" he said.
Sulaiman said by just stating the benefits of the takeover but without putting in an offer price, Idaman Saga failed to make the offer appear serious.
"So here the government cannot be blamed for not considering the offer," he said.
Sulaiman also questioned why PLUS should be sold to a third party when it is being well managed by two government agencies -- UEM Group owns 51 per cent, while EPF owns the remaining stake -- adding it is not just owned by the people but directly benefits 14 million EPF subscribers as well.
"If PLUS' profits benefit EPF subscribers, why should these profits be transferred to a third party?
"PLUS' revenue goes up with traffic growth on its highways, but although this increased revenue is returned as dividend to EPF subscribers, we see that PLUS is still able to take initiatives with their revenue," he said.
Although PLUS has not raised its toll rates since 2005, it is still able to manage its highways well for users' convenience, he pointed out.
"Taking the increasing traffic volume into consideration, PLUS has not only added lanes, from two to three to four, but also added more exit routes using their own funds," he said, adding the extra lanes and exits not only did not burden the government but have made travel by PLUS users more convenient.
"If the government manages a highway, its objective is not to do business with the people, but to plough back profits to benefit highway users," he added.
Bernama
Wed Jun 18 2014
PLUS takeover rejection the right move, say two elected reps
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