'PLUS shareholders to get full value'

Post-PLUS Expressways Bhd's annual general meeting on June 29. Shareholders will get the full value of PLUS shares at RM4.60 which includes the company's earnings potentials with dividends,
according to analysts.

AmInvestment Bank Analyst Mak Hoy Ken said the full potential of PLUS' shares was already factored in when the UEM Group Bhd/Employees Provident Fund (EPF) special purpose vehicle (SPV) decided on the RM4.60 price tag.

"The SPV had already considered the assets and liabilities of the company when it offered RM4.60 with dividends in consideration given PLUS' consistent performance," he said.

According to another local analyst, the RM4.60 prige tag had factored in the robust financial performance of the company as mirrored in its handsome annual dividend yields.


"PLUS share prices only increased significantly a few weeks amid the sudden interest as news of the acquisition of the company made it a target.

"The offer price is indeed within the higher range tabulated by many research houses and provides a good exit to shareholders with a premium, given the uncertainties of the highway business.

"While PLUS is at the tail-end of the acquisition process, the toll industry saw the delisting of MTD and toll being abolished or reduced at a number of highway stretches, Kajang and NPE to name a few. Like any other highways, PLUS is also exposed to these uncertainties," said Dr Nazri Khan, Head of Retail
Research, Affin Investment Bank.

The next three months will see the completion of the disposal of PLUS' assets expected at the end of July followed by a mid-August date for securing the High Court order for the selective capital repayment. In the meantime, business is as usual at PLUS.

The company recently launched the new "Kembara PLUS" magazine as well as introduced a five per cent rebate to road users who spend more than RM100 monthly in toll fees using the PLUSMiles loyalty card.

Its Managing Director, Datuk Noorizah Abdul Hamid, had earlier mentioned that the company had no intention to penetrate new markets as it was awaiting fresh direction from new shareholders upon its de-listing from Bursa Malaysia.

The takeover, which started mid-October last year, saw UEM-EPF jointly making an offer to the PLUS' board to buy the company's assets and liabilities for RM23 billion, which works out to RM4.60 per share.

Subsequently, little-known Jelas Ulung Sdn Bhd launched a rival bid, at a higher price of RM5.20 per PLUS share. PLUS independent directors then decided to seek more information from both bidders to determine the seriousness of their offers where a RM50 million deposit was required along with proof of the necessary funding.

UEM-EPF emerged as the only bidder to fulfil these requirements which the board deemed as a confirmed offer and was unable to evaluate or table Jelas Ulung offer to shareholders.

UEM Group, EPF and Khazanah Nasional Berhad who collectively hold 67.5 per cent of PLUS, did not vote on the deal during the Feb 23 extraordinary general meeting, which saw minority shareholders voting for the takeover by UEM/EPF. -- Bernama