Are previous takeover offers for PLUS undervalued, according to owners?

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Previous Takeover Offers for PLUS Were Undervalued, According to Owners

Khazanah Nasional Bhd and the Employees Provident Fund (EPF), the joint owners of highway concessionaire PLUS Malaysia Bhd, have stated that previous takeover offers for the company were undervalued. This assertion comes as the government reportedly considers a potential acquisition, though formal engagement with the current shareholders has not yet commenced. The owners emphasize that any sale process must involve proper engagement and a valuation that accurately reflects the asset's worth.
Unsolicited Offers Not Entertained Due to Undervaluation

Khazanah Nasional Bhd, which holds a 51 per cent stake in PLUS through its subsidiary UEM Group Bhd, and EPF, owning the remaining 49 per cent, have indicated that they have not initiated any sale process for the highway assets. The offers that have surfaced were unsolicited proposals made directly to the government, not to the shareholders. These previous offers were not entertained because, in the opinion of the owners, they significantly undervalued the assets of PLUS Malaysia Bhd.
Government Valuation Aligns with Current Asset Value

There is a positive development regarding the valuation of PLUS. The owners have expressed satisfaction that a recent valuation conducted by an independent investment bank on behalf of the government appears to be in line with the current market value of PLUS. This independent assessment provides a basis for a more realistic discussion about the highway concessionaire's worth, differing from the earlier, less favourable offers.
Formal Engagement with Shareholders is Pending

Khazanah and EPF have clarified that they have not yet been formally engaged by the government concerning the potential sale of PLUS. From a governance perspective, any decision regarding the disposal of these significant assets would necessitate a formal process involving direct communication and negotiation with the current shareholders. The owners await such formal engagement before any further steps can be taken in relation to the proposed takeover.
Cabinet to Discuss Proposed Takeover

The Malaysian Cabinet is scheduled to deliberate on the proposed takeover of PLUS Malaysia Bhd, alongside the potential acquisition of four highways in the Klang Valley currently operated by Gamuda Bhd. This discussion is a crucial step in the government's decision-making process. An announcement regarding the outcome of the Cabinet's discussion is expected to be made following their meeting.

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Are previous takeover offers for PLUS undervalued, according to owners?

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