MTD Capital directors offer RM3.25bill to acquire MTD Prime Sdn Bhd & Metramac Corp Sdn Bhd

• MTD Cap have made a RM3.25 billion cash offer to acquire the entire business and undertaking of MTD Prime Sdn Bhd and Metramac Corp Sdn Bhd including all their assets and liabilities. MTD Cap owns 100% of MTD Prime and Metramac.
• Offer made by its group executive chairman Nik Hussain Abdul Rahman and the president/chief executive officer Azmil Khalili Khalid.
• MTD Prime is the tolling concessionaire for the Kuala Lumpur - Karak Highway and its extension, the East Coast Expressway Phase 1 (ECE1).
• The 60 km KL Karak Highway is the main thorough fare connecting the Klang Valley and Karak Town whilst the 174km ECE 1 begins from Karak to Jabor.
• Metramac Corporation Sdn Bhd was granted the concession on four toll roads in 1992. The four toll roads under the concession awarded to Metramac were: 

1. Jalan Pahang, 
2. Jalan Cheras, 
3. East-West Link Expressway
4. KL-Seremban Expressway

• The toll concession of Jalan Cheras and Jalan Pahang were handed over to the government on Sept 14, 2003 and March 18, 2004.

• PM said there will be no toll hike for the Kuala Lumpur-Karak and phase one of the East Coast highway for 5 years, effective from May this year.
• In response to the government’s request, the companies had come forward to provide a restructuring plan via the acquisition of the concession assets.
• PM also requested that the concession period be not extended and there will be no compensation to be paid by the government for the arrears in the toll review.
• The proposal involve the termination of the toll concession for the East-West Highway connecting the Salak interchange and Taman Connaught interchange, KL ahead of the scheduled closure, which is 2018.

• Earlier MTD Cap has received a takeover offer from a consortium value of RM2.61bill. 
• Consortium consist of :

1. Nikvest Sdn Bhd, 
2. Alloy Consolidated Sdn Bhd, 
3. Alloy Concrete Engineering Sdn Bhd and 
4. Alloy Capital Sdn Bhd 

• Consortium collectively own 131.48 million shares or 53% stake in the company offered RM9.50 a share to acquire the balance 116.02 million shares or 47% stake they did not already own. They have received acceptances of 7.57%.
• Also to acquire the remaining 49.23% stake, or 113.72 million shares of MTD ACPI for RM0.53 per share.