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September 28, 2021 -Tuesday

 
  KUMPULAN PERANGSANG SELANGOR BERHAD'S 20% ASSOCIATE RECEIVES TAKEOVER OFFER FOR ENTIRE STAKE IN SPRINT

Monday 24/06/2019



·        Total purchase consideration of RM1,984 million less outstanding debts at Completion
·        SPRINT Holdings to revert decision by 12 July 2019

KUALA LUMPUR, June 24 (Bernama) --
Investment holding company Kumpulan Perangsang Selangor Berhad (“Perangsang Selangor” or “the Company” or “the Group”, Bursa: 5843; Bloomberg: KUPS:MK; Reuters: KPSB.KL) announced today that its 20% associate company Sistem Penyuraian Trafik KL Barat Holdings Sdn Bhd (“SPRINT Holdings”) received on 21 June 2019 a Letter of Offer from the Ministry of Finance (Incorporated) (“MOF”) to acquire all securities including ordinary shares, preference shares and loan stocks of Sistem Penyuraian Trafik KL Barat Sdn Bhd (“SPRINT”) (“the Offer”). SPRINT is a wholly owned subsidiary of SPRINT Holdings.

MOF has offered to acquire from SPRINT Holdings the entire equity interest in SPRINT for a total purchase consideration of RM1,984 million, less any outstanding debts as at the completion of the proposed acquisition (“the Completion”).

The Offer, which will be undertaken by MOF’s wholly owned special purpose company (“SPV”), is conditional upon satisfactory due diligence findings, approvals from the Cabinet of Malaysia and other relevant parties including authorities and shareholders, if applicable, and upon the execution of a definitive agreement in respect of and adherence to the terms of the Offer. The Offer to SPRINT Holdings shall remain open for acceptance until 5.00 pm on 12 July 2019.

This is a part of the government’s plan to abolish the existing toll mechanism at tolled highways in the country and replace it with a new “congestion charge” model, an intention the government had earlier announced last February. The new model is expected to help ease traffic congestion during peak periods by encouraging commuters to plan and shift their commute to the less congested hours.

Perangsang Selangor’s Managing Director/Group Chief Executive Officer, Ahmad Fariz Hassan said:

“The proposed acquisition of SPRINT by MOF is undoubtedly a positive corporate development for Perangsang Selangor. Monetising the non-core asset will position us a step closer to moving in the intended direction and ensuring the strategic business alignment at the Group level. This will further streamline our effort in growing the core businesses, allowing us to focus on a tighter scope of activities, consistent with our business aspiration and future business direction.”

The proposed acquisition will be subject to the following conditions precedent to be satisfied by 29 November 2019, or such other date as may be agreed between either MOF or the SPV, and SPRINT Holdings:

(1) The requisite shareholders’ approval(s) for the disposal of SPRINT; and
(2) The approval or consent of the creditors of SPRINT Holdings and/or SPRINT, where applicable.

Barring any breach of applicable negative covenants, the Completion is expected to be arrived at on 31 December 2019, or such other date to be mutually agreed upon between either MOF or the SPV, and SPRINT Holdings. Given the anticipated equity value of SPRINT being at approximately RM870 million, with 20% effective equity interest, Perangsang Selangor’s share of the anticipated equity value stands at RM174 million.

The Board of Perangsang Selangor will make the necessary announcement in due course after going through due process internally and with SPRINT Holdings.

“Not only will this profitable divestment lead the Company to providing greater focus on and unlocking the full potential of its core investments, but it will also help satisfy Perangsang Selangor’s future business and financial goals. Ultimately, the corporate optimisation strategy is expected to maximise the intrinsic worth of our core businesses and generate sustainable returns for the Group”, Ahmad Fariz concluded on the prospect of Perangsang Selangor’s core business once the proposed acquisition of SPRINT by MOF is completed.
 
About Kumpulan Perangsang Selangor Berhad (www.perangsangselangor.com)


Incorporated on 11 August 1975, Kumpulan Perangsang Selangor Berhad (“Perangsang Selangor” or “the Company” or “the Group”) is a public limited liability company listed on the Main Market of Bursa Malaysia Securities Berhad under the Industrial Products & Services Sector. Perangsang Selangor has core investments in the Manufacturing sector, as well as businesses in the Trading, Licensing and Infrastructure sectors. While strengthening our business to optimise returns, Perangsang Selangor is committed to providing significant contributions towards sustainable development in the areas of economic, environment and social for the benefits of all stakeholders.

Source: Kumpulan Perangsang Selangor Berhad

FOR MORE INFORMATION, PLEASE CONTACT: 
Name: Zulkifli Mawardi
Investor Relations & Strategic Communication 
Tel: +603 5524 8400
Email: zulkiflimawardi@kps.com.my

--BERNAMA 

 
 
 

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