ALL EYES ON VALUATION: Ekovest to sell 40% stake in DUKE operator to EPF

PETALING JAYA – Ekovest Bhd is disposing of a 40% stake in Konsortium Lebuhraya Utara-Timur (KL) Sdn Bhd (Kesturi), which operates the Damansara Ulu Kelang Expressway (DUKE), to the Employees Provident Fund (EPF) for RM1.13 billion.

In a filing with the stock exchange, Ekovest said its wholly-owned subsidiary Nuzen Corp Sdn Bhd yesterday entered into a binding term sheet with EFP for the stake sale.

The 40% stake comprises 2 million ordinary shares of RM1 each and 18 million redeemable preference shares of RM1 each held in Kesturi, and 1.44 million new shares of RM1 each to be issued by Kesturi at RM100 apiece upon the completion of a capitalisation exercise to be undertaken by Kesturi.

Last month, Ekovest received an expression of interest letter from the EPF to enter into exclusive negotiations on the disposal.

The disposal is conditional upon, among others, the approval of Ekovest’s shareholders, consent from the Malaysian government and holders of the existing senior sukuk issued by Kesturi and the EPF being satisfied with the outcome of a due diligence exercise to be carried out on Kesturi.

The parties have agreed that they will enter into a definitive sale and purchase agreement (SPA) within 30 business days from the date of the binding term sheet or later, subject to mutual agreement.

The parties have agreed to cooperate exclusively with each other with respect to the disposal for 30 business days from the date of the binding term sheet, subject to extension upon written confirmation of all parties.

A detailed announcement on the proposed disposal will be made upon finalisation of the SPA, Ekovest said.

Astramina Advisory Sdn Bhd has been appointed financial adviser for the disposal.

Trading in Ekovest shares was suspended yesterday pending the announcement. On Tuesday, the counter ended 4 sen higher at RM1.97. – Sundaily