Download kamal raja6/16/2023 In short, the highway users are indirectly paying for the acquisition. Keep in mind that the financial positions of these companies are improving through the purchase of the highways at a premium, whereby the funds for the acquisition are raised through Islamic bonds (Sukuk) issued by ALR, which would be paid back to bondholders through the extension of the concession. Other winners would be existing shareholders of the concessionaires such as Employees Provident Fund, Kumpulan Wang Amanah Persaraan (KWAP), Permodalan Nasional Bhd (PNB), and Lembaga Tabung Haji, as these government-linked companies would receive a faster return on their investments. A Malaysian highway user pays a toll station in Kuala Lumpur December 18, 2013. This allows Gamuda to finance future projects, such as the Penang South Island (PSI), Mass Rapid Transit 3 (MRT3) Circle Line, and overseas projects. Profitable highway operators forfeit their future revenues and profits through a higher upfront and untaxed profit without having to go through years of operations.įor example, it has been reported that Gamuda Bhd (Gamuda), the company owning major stakes in all the four highways, estimates that the sale of its highway concessionaire business would mean foregoing roughly RM170 million worth of future profits, trading it for an up-front untaxed gain worth RM1 billion.Īs reported by The Edge Markets, Gamuda can repay its net debt of RM1.7 billion and achieve a net cash position of RM600 million through the deal.
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