BY P. ARUNA
PETALING JAYA: Ekovest Bhd is selling a 40% stake in Konsortium Lebuhraya Utara-Timur (KL) Sdn Bhd (Kesturi) for RM1.13bil cash to the Employees Provident Fund (EPF).
The deal values Kesturi, which is the concession holder of the Duta-Ulu Kelang Expressway (Duke), at about RM2.8bil.
Ekovest’s unit, Nuzen Corp Sdn Bhd, signed a binding term sheet with the EPF to sell the stake yesterday.
The stake comprises two million shares and 18 million redeemable preference shares of RM1 held in Kesturi and 1.44 million new shares.
In its announcement to Bursa Malaysia, Ekovest said the sum would be paid in three parts.
When the sale is completed, the EPF will pay RM921mil cash, as part payment to Nuzen and a further RM60mil once the certificate of practical completion is issued for Duke phase 2.
The EPF will then pay RM149mil cash to Nuzen, subject to the achievement of pre-agreed targeted returns in the event of certain exit scenarios.
Ekovest said the proposed disposal would hinge on the approval of Ekovest’s shareholders, consent from the Government under the relevant concession agreement entered into by Kesturi, consent from the holders of an existing senior sukuk issued by Kesturi, and the EPF, following a due diligence exercise to be carried out on Kesturi.
The parties agreed to enter a definitive sale and purchase agreement (SPA) within 30 business days from the date of the binding term sheet.
Ekovest said a detailed announcement on the proposed disposal would be made upon finalisation of the SPA.
StarBiz had earlier reported that Ekovest was planning to monetise its highway assets and had been in talks with local and foreign parties for a potential stake sale in Duke.
Ekovest first bought a 70% stake in the 18-km Duke with a 34-year concession under an RM325mil share-swap deal with Wira Kristal Sdn Bhd in 2012.
Ekovest later acquired the remaining 30% stake in Duke from Malaysian Resources Corp Bhd for RM228mil in 2013. At the time, the deal valued the Duke highway at RM553mil.
Last month, Ekovest signed an agreement with four local banks to issue ringgit-denominated sukuk wakalah worth RM3.64bil to partly fund its Setiawangsa-Pantai Expressway project, formerly known as Duke phase 3.
The 32.1-km highway is estimated to cost RM5.05bil, taking into consideration the debt service covering ratio within the construction.
Ekovest is currently constructing the expansion of phase two of Duke, costing RM1.18bil, which is estimated to be completed by the end of this year.
The extension will expand the existing Duke from two ends; via a 7km link from Sri Damansara and a 9km link from Jalan Tun Razak.
