Posted by sohaitrader > 2020-01-10 10:08 | Report Abuse

2. PLUS Up for Sale?
PLUS Malaysia Bhd has attracted four bidders to date. The highest bid made so far is from Tan Sri Halim Saad and his partner Datuk Wong Gian Kui who have tabled a fresh RM6.8 billion offer, a third more from the RM5.2 billion bid earlier as rivals sweeten their offers as well for the highway concessionaire.


Dr Mahathir (second from left) looking at the Bandar Malaysia model. The revised Bandar Malaysia project will see greater role for local contractors and resources, as well as a greater number of affordable homes at the location

Halim has also proposed a 25% discount on toll rates and for the concession period to end as per December 2038. The former executive vice chairman of Sumatec Resources Bhd is seeking to buy Khazanah’s stake in PLUS, based on the offer letter to the government.

Wong sits on the boards of Insas Bhd, Inari Amertron Bhd, Ho Hup Construction Co Bhd, SYF Resources Bhd and Yi-Lai Bhd.

Posted by sohaitrader > 2020-01-10 10:09 | Report Abuse

PLUS today operates eight expressways under five concessions. These concessions end in 2038. Its highways are the 772-km North-South Expressway which runs from Bukit Kayu Hitam to Johor Baru; the New Klang Valley Expressway; Federal Highway Route 2; the Seremban-Port Dickson Highway; the NSE Central Link; the Malaysia-Singapore Second Link; Lebuhraya Butterworth-Kulim and the Penang Bridge.

PETALING JAYA: The Cabinet has ordered the three main ministries back to the drawing board before it decides on the takeover of PLUS Malaysia Bhd, says a Works Ministry source.

The decision is now expected to be out next week, as the Works Ministry, Economic Affairs Ministry and Finance Ministry continue to iron out details on who or how to best manage the largest highway concessionaire in the country, said the source.

A decision was expected to be made yesterday. However, with the complicated nature of the deal, the deadline had to be extended by another week.

For the PLUS deal to materialise, a few conditions are key. The government must not be burdened with further debt, the toll rates have to be reduced by at least 18% and the concession period cannot be extended more than 20 years, said the source.

In late December, Finance Minister Lim Guan Eng had said that a decision on PLUS must be made soon so that the government could avoid paying more compensation.

The government had already announced the freeze on toll hikes last year, and has to compensate toll operators.

During the tabling of Budget 2020, Lim said that an average reduction of toll rates by 18% would save some RM43bil for highway users until 2038, which is when the concession ends.

So far, there have been four formal offers to take over PLUS.

The latest takeover offer came in October 2019 from businessman Tan Sri Halim Saad and Datuk Wong Gian Kui with a RM5.2bil offer to buy the entire equity interest of PLUS via Karongsa Private Capital Sdn Bhd.

His deal includes a 25% discount on toll rates, and does not seek an concession extension.

Wong is a prominent businessman who currently sits on the boards of Insas Bhd, INARI AMERTRON BHD, Ho Hup Construction Co Bhd, SYF Resources Bhd and YI-LAI BHD.

It was during Halim’s tenure as head of UEM Group and Renong Group that the company had secured a RM3.4bil contract to build PLUS. Today, he is back in a different capacity to take over the highway concessionaire.

Then, there is also Widad Business Group Sdn Bhd which owns Widad Group Bhd, which has offered RM3.5bil cash to buy up PLUS. Its deal comes with a minimum 25% toll cut and an extension of 20 years.

The third offer is from a Malaysian-led, Hong Kong-based private equity firm, RRJ Capital, which has made a bid to acquire PLUS outright for RM3.5bil.

The firm, which manages US$20bil in funds sourced mainly from the United States and the Middle East, looks to offer toll discounts averaging 20% and is looking for a 20-year extension period.

Meanwhile, Tan Sri Abu Sahid Mohamed of Maju Holdings Sdn Bhd is the only bidder to put in an enterprise value offer for PLUS at RM34.9bil. Maju is the concession holder of the Maju Expressway (MEX).

As it is, the government currently owes PLUS RM2.7bil in toll compensation.

In a statement last October, Maju Holdings said that if Maju took over PLUS, it wouldn’t hold the government responsible for these debts. This would translate into RM2.7bil in savings for the government.

Further, the company has also pledged to invest RM5.3bil on improving all the highways under PLUS.

Maju’s enterprise value to purchase PLUS includes outstanding debt to bond-holders of RM34.9bil. This purchase consideration is a reflection of the true and fair value of the company and its assets, Maju had said.

In the public realm, very little is known about Abu Sahid’s businesses, as most of his companies are privately held. He does, however, have a 12.99% stake in IPMUDA BHD, which supplies building materials and finishing products to the construction industry. Abu Sahid is the executive chairman of Ipmuda.

PLUS today operates eight expressways under five concessions. These concessions end in 2038.

Its highways are the 772-km North-South Expressway which runs from Bukit Kayu Hitam to Johor Baru; the New Klang Valley Expressway; Federal Highway Route 2; the Seremban-Port Dickson Highway; the NSE Central Link; the Malaysia-Singapore Second Link; Lebuhraya Butterworth-Kulim and the Penang Bridge.

Currently, PLUS is controlled by the UEM Group – a subsidiary of Khazanah Nasional Bhd – and the Employees Provident Fund (EPF). Khazanah holds a 51% share in PLUS, while the remainder 49% is held by the EPF.

Khazanah, which is the country’s investment arm, has said that it has no plans to divest PLUS. Nonetheless, the government has shown willingness to consider private bids for the highway company.

Prime Minister Tun Dr Mahathir Mohamad has said that it would be a better option for the private sector to take over the highway concessionai

Posted by dragonslayer > 2020-01-10 10:14 | Report Abuse

Aiyo..maybe someone want to sell wb at 1sen ..push up mother look cantekkkkk..think wanna to unload wb at 1sen..but..today..seller overwhelming...go back to half sen......lol...aiyoyo..kikiki


Posted by Sslee > Jan 9, 2020 7:14 PM | Report Abuse

Haha,
Juat trying to pull stockraider leg.
But wonder why today someone bought over 9 million WB?

Posted by dragonslayer > 2020-01-10 10:18 | Report Abuse

Aiyo...boss really kiamsiap and secretive...left 1 mth alao dun want to show his last card lagi kah...lol...aiyoyo..kikiki

Posted by sohaitrader > 2020-01-10 10:36 | Report Abuse

Omesti .... must monitor also .. good chart pattern

Posted by CS > 2020-01-10 11:09 | Report Abuse

very less resistance ahead... still room to shoot up..

Posted by TheContrarian > 2020-01-10 13:31 | Report Abuse

Satu ringgit by CNY eve, everyday goes up by 1 sen.

Posted by 3101575000 > 2020-01-10 13:50 | Report Abuse

TheContrarian: satu ringgit U want to sell?!

Posted by sohaitrader > 2020-01-10 14:39 | Report Abuse

yeah 1 day up by 1 sen cukup enuf

Posted by CS > 2020-01-10 15:57 | Report Abuse

lai lai.. everyday up abit .. then jadi bukit bukit!!

Posted by tah16600 > 2020-01-10 16:04 | Report Abuse

Rm 1 is comming

Posted by tah16600 > 2020-01-10 16:31 | Report Abuse

I think Dato Thong n family will exercise his warrant which amount to slightly more than 10 % of Insas

Posted by leno > 2020-01-10 16:43 |

Post removed.Why?

Posted by CS > 2020-01-10 16:59 | Report Abuse

Directors seems to hold already around 70% of shares in the market wo... refer to 2019 AR.. can buy so many from the market oh?

Posted by TheContrarian > 2020-01-10 21:37 | Report Abuse

Leno darling, Ah Thong or family no need to pay RM1 to exercise their warrants since they can contra against the redemption of their preference shares. If they buy now from the open market they have to fork out cash to pay. So, they have to wait until redemption date of the preference shares which coincides with the last exercise date of the warrants. MGO coming.

Posted by tah16600 > 2020-01-11 09:05 | Report Abuse

To buy 10% at less than Rm 0.90 ,I think is not possible cos the shares are not stagnant lol !

Posted by leno > 2020-01-11 10:19 | Report Abuse

can buy 1% or 2% or 3% also wat ? wat are u still talking about ? u must be some amateur ... ask if dunno.

Posted by sohaitrader > 2020-01-11 13:02 | Report Abuse

just buy mother share and keep until it break major resistance RM 0.92 ,., i guess long term wise insas should worth 2.50 ~ 3.00 recently i also heard about insas will have good news ahead .. TA wise above ema 200 days . bullish in mont hly weekly daily chart.. just keep it ... 2020 super bull stock = INSAS canteek.. thanks leno and contrarian for recommend insas to others investors !

Posted by TheContrarian > 2020-01-11 18:00 | Report Abuse

Now Ah Thong and family cannot buy even one share because it will trigger 33% MGO. Ah Thong and family's money stuck in millions of Insas Preference Shares due for redemption in February. On redemption date Ah Thong and family will tell Insas to contra against the exercise price of warrants held by them. MGO coming.

Posted by TheContrarian > 2020-01-11 18:28 | Report Abuse

Based on list of top 30 Preference Shareholders, Ah Thong and family hold over 65 million Preference Shares which is sufficient money to exercise over 65 million warrants.

Posted by Sslee > 2020-01-12 18:20 | Report Abuse

Hahahaha,
Stockraider had been q sell his 1 million WB at 0.5 cents to no avail for many days. So finally he went praying to the god of mercy for someone to buy his 1 million WB. His prayer is answered by 12.4 mil warrants transacted in the last 2 trading days mostly at 0.5 cent.

He is now praying to god of mercy again for Dato’ Sri Thong to offer MGO at RM1.00+ half cent. Will god of mercy answered his prayer again?

Thank you

Posted by 888next > 2020-01-12 20:37 | Report Abuse

Those who bought from Stockraider and others will also need the help of god of mercy now.

What happens if Thong 's group does not convert and all the warrants expire??

The status quo of all shareholders is maintained then.

Thong will have lost an opportunity to increase his shareholding from 32.98% to 42% and costing only RM1 a share.

The only option left will be to cross a block of Insas shares and or a PAC (persons acting in concert) but both these options will trigger the 33% and MGO .

If Thong delays any increase in upping his stakes, there may arise a Hostile Takeover offer at say RM1.50 a share (since the worth of Insas is above RM3.50) and present a tussle. Hosei for us.

So it is not bad if the warrants are not converted.

Thank you.

Posted by leno > 2020-01-12 21:19 |

Post removed.Why?

Posted by TheContrarian > 2020-01-12 22:30 | Report Abuse

Ah Thong no longer director of Insas, his brother also not a director of Insas. This means any acquisition or disposal of Insas warrants need not be announced. Only acquisition or disposal of Insas ordinary shares need to be announced as they remain substantial shareholders. Did Ah Thong or his family bought the 150 million warrants?

Posted by CS > 2020-01-13 09:37 | Report Abuse

insas CANTEKKKKKKKKK!!!! boooooooom!!! shoot up..

Posted by KAQ4468 > 2020-01-13 09:39 | Report Abuse

cantekkkkk ka ???

ada cantekkkkkk ???

pasti cantekkkk ????

Posted by CS > 2020-01-13 10:05 | Report Abuse

I am not god to guarantee, but I can see very less resistance ahead.. can break up easily lo...

Posted by sohaitrader > 2020-01-13 10:40 | Report Abuse

possible is halim saad bought in insas wb ! hahahaha

Posted by CS > 2020-01-13 17:04 | Report Abuse

take some rest to wash away player Q around 890 and 900?

Posted by sohaitrader > 2020-01-14 09:32 | Report Abuse

insas hari ini break 90 sen go gogo

Posted by TailWagsDog > 2020-01-14 17:13 | Report Abuse

Insas and Inari on the verge of a big ascent.

Posted by CS > 2020-01-15 16:02 | Report Abuse

INSAS has only 8.88 mil (out of 265 mil) warrants in the first 3 rows of sell queue.. and stay at price on 0.88... looks nice..

Posted by CS > 2020-01-15 16:59 | Report Abuse

Seems to have strong support on 880 now... ready to fly?

Posted by TheContrarian > 2020-01-15 22:06 | Report Abuse

Will only fly in the year of metal rat.

Posted by CS > 2020-01-16 08:35 | Report Abuse

Then it shall be coming soon bro... Gold Rat Year!

Posted by sohaitrader > 2020-01-16 16:21 | Report Abuse

ZZZZzzzzz took some profit on insas ..and switch to Ock ... hahaha

Posted by CS > 2020-01-16 17:13 | Report Abuse

uptrend today.. absorbing power of HUAT around 880 before breaking-through resistance 885-925! gogogo!

Posted by TheContrarian > 2020-01-17 10:59 | Report Abuse

For next 15 trading days Insas naik satu sen each day. MGO coming.

Posted by sctan > 2020-01-17 11:16 | Report Abuse

Major shareholder can ask for waiver, and is normally approved by SC, not necessary will trigger MGO

Posted by stockraider > 2020-01-17 11:20 | Report Abuse

No where can get waiver loh....!!

Take it or leave it mah....!!

So insas boss need decide whether they are prepare to increase its stake at Rm 1.00 & trigger GO or leave insas as it is and wait for another distant opportunity in the future loh....!

Posted by sctan > Jan 17, 2020 11:16 AM | Report Abuse

Major shareholder can ask for waiver, and is normally approved by SC, not necessary will trigger MGO

Posted by CS > 2020-01-17 17:02 | Report Abuse

interesting trading activities happen in last 1 hours of trading.. While one big fish try to keep the price above 890, another one was trying to push down the price to 885 and below (resistance) .. looks like 2 big fishes fighting each other..

At the end, price close at 895~ uptrend today again... look forward another breakthrough on 925 for more uptrend...

Posted by CS > 2020-01-19 18:49 | Report Abuse

Thanks for the fruitful info..

breakout on 925 could lead to TP around 965, 1020 and 1140.. anyone have similar thoughts?

Posted by CS > 2020-01-20 09:22 | Report Abuse

Seems like AmInvest is with me.. lol.. breaking 925 on the way..

Posted by Fabien "The Efficient Capital Allocater" > 2020-01-20 10:57 | Report Abuse

Interesting thesis by 888next

Conclusion: MGO is inevitable?

Posted by CS > 2020-01-20 16:48 | Report Abuse

up or down in last 10 min of trade??

Posted by CS > 2020-01-20 17:17 | Report Abuse

close with a slight green today.. observed strong support on 895... hopefully could make a push through 925..

Posted by Aristocats > 2020-01-21 08:06 |

Post removed.Why?

Posted by CS > 2020-01-21 14:48 | Report Abuse

strong support is setting up on 900 =)

Posted by CS > 2020-01-21 19:35 | Report Abuse

steadily stepping up everyday..

Posted by CS > 2020-01-21 22:44 | Report Abuse

Hi 888next... do you able to estimate how much they would offer for each share during MGO? ($.$ )?