Will Pakatan Harapan sell PLUS to lower tolls while keeping profits?

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Pakatan Harapan Considering Sale of PLUS to Entities Aiming for Lower Tolls and Maintained Profits

The Pakatan Harapan administration has indicated a willingness to consider selling PLUS Malaysia Berhad to a potential buyer capable of reducing toll rates while simultaneously maintaining the company's profitability. Negotiations regarding the sale of the highway concessionaire are reportedly still in progress, with Tan Sri Halim Saad and a partner emerging as leading contenders.
Halim Saad and Partner Emerge as Frontrunners

Tan Sri Halim Saad, alongside his partner Datuk Wong Gian Kui, has significantly advanced their position in the bid for PLUS. They have reportedly increased their initial offer by over 30%, exceeding RM5.2 billion. This enhanced offer is seen as a strong move to secure one of the nation's most significant highway deals, with sources indicating the government had requested a revised price.
Government's Stance on Toll Reduction and Profitability

The administration has maintained an ambiguous stance on its ultimate plans for PLUS, but a key consideration for any sale involves the buyer's ability to implement lower toll rates. This must be achieved without compromising the financial viability and profit margins of the highway operator. This dual objective underscores the government's approach to the potential divestment.
Ongoing Negotiations and Previous Bids

Discussions surrounding the sale of PLUS are understood to be ongoing, with Halim Saad's name frequently reappearing in recent reports as a primary bidder. Previously, in October, Halim and Wong had submitted a RM5.2 billion bid for Khazanah Nasional Bhd's 51% stake in PLUS. This offer did not include an extension of the current concessions, which are scheduled to expire in 2038, and proposed a 25% discount on existing toll rates.
Competitive Bids and Proposed Concession Terms

The offer from Halim and Wong currently surpasses that of other interested parties, such as the Widad Business Group. Widad had revised its bid to RM5.3 billion cash for all stakes, a substantial increase from its initial RM3 billion proposal. Widad's proposition also included toll rate reductions ranging from 25% to 40%, contingent upon an extension of the highway operator's concession period.

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Will Pakatan Harapan sell PLUS to lower tolls while keeping profits?

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