KUALA LUMPUR: The sale of a 40% stake of Ekovest Bhd’s concession highway Duta-Hulu Kelang Expressway (DUKE) to the Employee Provident Fund (EPF) for RM1.13bil is expected to complete by first quarter of next year.
Today, Ekovest has entered into a conditional share sale agreement (SSA) with the EPF for the 40% stake sale for Duke phase 1 & 2.
“Our target is to complete the SSA by first quarter next year,” said Ekovest managing director Datuk Seri Lim Keng Cheng.
Following the completion of the SSA, the EPF would fork out RM921mil cash to Ekovest. A further RM60mil will be paid to Ekovest once Duke phase 2 completed.
The EPF will then pay RM149mil cash to Nuzen, subject to the achievement of re-agreed targeted returns.
“The proposed disposal is in line with the company’s strategy to monetise its matured infrastructure assets to free up its financial resources for the expansion of its infrastructure division and other core businesses such as construction and property development,” said Ekovest chairman Tan Sri Lim Kang Hoo in his speech at the signing ceremony of the SSA today.
On the proceeds of sales, Ekovest said it would be distributing RM245mil to its shareholders, RM400mil for repayment of borrowings and RM485mil for working capital.
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EPF deputy chief executive officer for investment Datuk Mohamad Nasir Ab Latif said among the fund’s investment criteria for infrastructure assets include strong regulatory framework and operational background as well as matured and cash generating assets.
He said EPF has allocated 10% of its RM682bil fund to invest in private equity, property and infrastructure assets.
“About 3% of our fund size has been allocated for infrastructure such as ports, power plants and toll highways,” Mohamad Nasir said.
