Dealings concerning PLUS must be transparent and accountable

DAP National Deputy Chairman and MP for Kepong Dr Tan Seng Giaw reiterates that the Central Government must ensure that the dealings concerning PLUS Expressways BHd are truly transparent and accountable, in the real interest of the people.

When the concession agreement between PLUS and the Government expired in January, 2009, motorists were hoping that the Governmnet would take over and that the toll rate would be reduced.

On 24.2.2011,Dr Tan expresses his concern over the RM23 bil takeover bid of PLUS Expressways BHD by UEM Group and the Employees Provident Fund (EPF) yesterday. There was a walkout of minority shareholders. Now UEM is a government-linked company (GLC).

The toll operator called for the EGM to table a takeover proposal from UEM-EPF for RM23bil, or RM4.60 per share on 23.2.2011. The EGM, which lasted about four hours, was attended by some 800 people. Independent advisors such as AmInvestment Bank BHD and Goldman Sachs endorsed the offer as credible. UEM, KHazanah and EPF abstained from voting at the EGM.

Khazanah, UEM and EPF hold a combined 67.7% stake. EPF holds a 12.3% stake in PLUS while UEM Group, together with its parent Khazanah, holds 55.4%.

Based on shareholding spread, some 1.55 billion shares, or 31% stake, are eligible to vote on the takeover offer by UEM-EPF. However, only 1.06 billion or 21% of the total PLUS shares voted at the meeting. Of the 21%, 99% were for the deal.

Although independent advisors believe the takeover offer is credible, road users are worried about the toll rate. How would the takeover of PLUS by GLC improve the life of the people?

The Government must protect the interest of the public, ensuring that all dealings concerning PLUS are transparent and accountable. How would the takeover contribute to innovations in the private sector? Would it help the national economy?

Dr Tan Seng Giaw