Ancom, Nylex, LBS Bina propose LRT system connected to JB-Singapore RTS Link

KUALA LUMPUR (March 21): Ancom Bhd has teamed up with its subsidiary Nylex (Malaysia) Bhd, property developer LBS Bina Group Bhd and two other parties to propose a light rail transport (LRT) system connected with the railway shuttle link currently being built from Singapore to Johor Bahru.

The two others are Sinar Bina Infra Sdn Bhd — owned by businessman Datuk Avinderjit Singh Harjit Singh (70%) and Tunku Abdul Majid ibni Sultan Iskandar (30%) — and BTS Group Holdings Public Company Ltd.

BTS, listed on the Stock Exchange of Thailand, is the major shareholder of Bangkok Mass Transit System Public Company Ltd, the operator of the BTS Skytrain and Bangkok BRT.

The proposal involves the construction of the LRT system via an integrated property development using the transit-oriented development (TOD) concept in the Johor Bahru metropolitan region, said Ancom, Nylex and LBS in separate bourse filings.

The project is subject to a feasibility study being completed and the grant of the concession award for the project by the Johor government, the companies said.

The five entities on Monday (March 21) signed a heads of agreement (HoA) for a proposed joint venture in connection with the LRT concession and the development of the land as part of the project.

The proposal includes the acquisition by Nylex (which is 50.13%-owned by Ancom) of three parcels of land in the commercial area along Jalan Dato’ Dalam in Johor Bahru city from LBS, at a price to be agreed by both Nylex and LBS and satisfied via new Nylex shares at 15 sen per share.

The proposal also includes a private placement of new Nylex shares to BTS, Ancom and other investors to be identified, after completion of the joint venture and land acquisition.

BTS will have the right to subscribe for up to two billion Nylex shares at 15 sen each, raising proceeds of up to RM300 million. Ancom, meanwhile, will have the right to subscribe for up to 500 million Nylex shares at 15 sen each, raising proceeds of up to RM75 million.

In their filings, Ancom, Nylex and LBS said: “Pursuant to the HoA, Nylex shall appoint BTS to commission a feasibility study by professional consultants on the commercial viability of a LRT system using the TOD concept in the Johor Bahru metropolitan region.

“BTS shall also provide Nylex with its input and experience in operating and implementing the TOD concept in the Bangkok metropolitan region.”

The planned LRT project being evaluated under the feasibility study is projected to have an estimated carrying capacity of 15,000 passengers per hour per direction, matching that of the RTS Link currently being built from Singapore to Johor Bahru.

The proposed project could span 75 km, with the initial phase of the project within the Johor Bahru city centre to be about 9 km.

“BTS or its affiliate shall be the preferred equipment supplier and system integrator for the LRT project and the preferred main contractor for the operation and maintenance of the LRT system. Whereas, LBS or its affiliate will be the preferred civil and construction contractor for the LRT project,” said the filings.

Nylex said it has been classified an affected listed issuer under the Main Market Listing Requirements of Bursa Securities, as it has ceased all of its business and entire operations.

“As such, the proposals will form part of the regularisation plan to be undertaken by Nylex to regularise its affected listed issuer status. The regularisation plan will result in a significant change in the business direction or policy of Nylex and is subject to the approval of the Securities Commission Malaysia,” it added.

Ancom shares were up six sen or 1.64% to end Monday's session at RM3.71, valuing the company at RM983 million. Nylex closed up two sen or 4.55% at 46 sen, for a market value of RM89 million.

LBS closed up 2.5 sen or 5.21% at 50.5 sen, for a market capitalisation of RM792 million.

Source: TheEdge - 22 Mar 2022