(TMI) KUALA LUMPUR : Asas Serba Sdn Bhd is hoping to present their plans to acquire the nation’s toll concessions before the Cabinet tomorrow to get the government’s backing, sources say.
Asas Serba is proposing to take all of the nation’s 23 toll road concessions private for RM50 billion and in exchange is promising to give a 20 per cent discount on toll rates as well as no further rate increases.
But the unsolicited proposal has not seen much traction within the Najib administration, government sources say.
When contacted, Asas Serba director Ibrahim Bidin didn’t deny that it aims to present their case before the Cabinet at its weekly Wednesday meeting. Such papers are normally submitted through the Finance Ministry or the Economic Planning Unit within the Prime Minister’s Department.
“No confirmation yet,” he told The Malaysian Insider.
In contrast to Asas Serba’s RM50 billion bid, government think tank Pemandu, as part of its subsidy rationalisation exercise, estimated that it will cost the government RM383 billion to nationalise the 23 toll concessions.
Asked about the difference between Pemandu and Asas Serba estimates, Bidin said that Pemandu’s figure appeared high but declined to elaborate as he hadn’t seen how it was derived.
Ibrahim said that Asas Serba has yet to appoint a financial advisor but has engaged a strategic consultant.
“The moment the government says that they want to see the final proposal then we will appoint a merchant banker,” he said. “I heard that the government is favourable to us.”
Local research house OSK Research said in a report that the Asas Serba bid to acquire toll concessions from a combination of public and private sector entities is complex and gaining approval from shareholders will be “daunting”.
Asas Serba has not approached the toll concessionaires directly but Ibrahim said that they will do so if the government gives them the “green light”.
READ MORE HERE.
Asas Serba is proposing to take all of the nation’s 23 toll road concessions private for RM50 billion and in exchange is promising to give a 20 per cent discount on toll rates as well as no further rate increases.
But the unsolicited proposal has not seen much traction within the Najib administration, government sources say.
When contacted, Asas Serba director Ibrahim Bidin didn’t deny that it aims to present their case before the Cabinet at its weekly Wednesday meeting. Such papers are normally submitted through the Finance Ministry or the Economic Planning Unit within the Prime Minister’s Department.
“No confirmation yet,” he told The Malaysian Insider.
In contrast to Asas Serba’s RM50 billion bid, government think tank Pemandu, as part of its subsidy rationalisation exercise, estimated that it will cost the government RM383 billion to nationalise the 23 toll concessions.
Asked about the difference between Pemandu and Asas Serba estimates, Bidin said that Pemandu’s figure appeared high but declined to elaborate as he hadn’t seen how it was derived.
Ibrahim said that Asas Serba has yet to appoint a financial advisor but has engaged a strategic consultant.
“The moment the government says that they want to see the final proposal then we will appoint a merchant banker,” he said. “I heard that the government is favourable to us.”
Local research house OSK Research said in a report that the Asas Serba bid to acquire toll concessions from a combination of public and private sector entities is complex and gaining approval from shareholders will be “daunting”.
Asas Serba has not approached the toll concessionaires directly but Ibrahim said that they will do so if the government gives them the “green light”.
READ MORE HERE.
2 comments:
My question to Asas Serba is how they do the financing? Will they be able to do the financing by just issuing bond?
The company did not have any track record. This is terrible! Because we don't know how the company functions and what are the 'excellent' result that could convinced people to believe in Asas Serba's promises...
Please show me what Asas Serba had done before!
Frankly speaking, I was frightened with the toll takeover proposal by Asas Serba. Not to mention the proposal seems a bit ‘cacat’ as it is so unclear that Asas Serba will success in getting fund to buy all 23 tolls in Malaysia, also, I was just too curious about the company background. What they had done before? It is just so ambiguous as the company is not having any past business record. Huh, sounds so terrible by assigning all the tolls for a company with no past record to handle la wei~~
So, if Asas Serba gets nods from government, what else I can say? God bless us!!
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