KUALA LUMPUR (Jan 18): Silk Holdings Bhd's toll concession asset will be sold to Permodalan Nasional Bhd (PNB) for RM380 million, both said in a joint statement today. According to the press release, Silk Holdings has entered into a conditional share purchase agreement with PNB for the disposal of 100% of the issued and paid-up share capital of Sistem Lingkaran-Lebuhraya Kajang Sdn Bhd (SILK) for a cash consideration of RM380 million. This confirmed The Edge Financial Daily's report that a government-linked fund is involved in preliminary talks with Silk Holdings to buy the asset. SILK is the concession holder of the 37-kilometre Kajang Traffic Dispersal Ring Road (SILK Highway) under the concession agreement executed in October 1997 to finance, design, construct, operate and maintain the SILK Highway for 36 years, ending July 31, 2037. Recall that before PNB, there had been three different parties expressing interest to buy into SILK Highway since 2014 — IJM Corp Bhd, Taliworks Corp Bhd and WZ Satu Bhd — before they made a U-turn.

Source: The Edge Markets January 18, 2017 10:55 UTC