Plus was bought by the GOM and sold to EPF and Khazanah for 23B in 2011.By 2020 there were three bidders of as high as 30B to takeover Plus highways. WCE highway when ready competes directly with Plus for destinations in the north and enjoy advantages of being relatively flat which will appeal to commercial traffic for fewer wear and tear losses and passing through and closeby many towns and villages which will be attractive to motorists and holiday seekers .It is highly conceivable that WCE will be a takeover target to have all highways under the same roof to harmonise toll rates and reduce competition and cannibalisation
The route alignment of WCE from the north to the south up to Banting and thereafter by FR32 to KLIA is superior as the distance and toll charges are expected to be lower compared to present travelling into and out of KLIA involve different tolled higways with separate charges. Motorists travelling on WCE will also experience saving from the non-tolled stretch fron Tanjung Karang to Hutan melintang
@ John, thanks for sharing. Therefore if cost more than double current price, takeover price minimum 70c? This doesn't factor future earnings. Wonder what's the fair value as win win for both parties, as they say? If some parties can estimate they will start buying in a big way.
@Edge, I think major shareholders like Surin and Pang will not agree if the takeover offer is anything less than $1.50. Notwithstanding that the RI was cheap , their cost for the initial batches of share acquisition was $1.30+ . Someone has worked out the NPV of the cash flows based on certain assumptions of traffic volume about 2 years ago and he arrived at fair median value of $1.50+ too. You can search for that posting in this forum .
@JohnZhang, thanks for reply. If the government is really serious to take over this company, the price shd fly when it is nearer to official announcement. At least 500% return from this level! Seems there's some slow buying interest these few days.
@Albert, yeah possible. We hv all kinds of people here. Anyway since this is open forum with freedom of speech, let's hear what he has to say. Who knows, he may know something that most others can't see. We can learn a thing or two.
This counter is in doldrums is due to excessive delay in highway completion and toll collection schedules, hence greatly affect the company’s cashflow. I think share price will go much higher once toll collection for 80% of its highway is reached . If traffic volume surpass expectation, share price will jump. Patience is the key .
@ John. Thanks for sharing. Checks on website shows latest project schedule updated till September last year. About one month ago, there was a post about fund required to complete highway and huge interest to service. Any concern this will impact project completion or the valuation of the counter? Kindly share your views. Thanks
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