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MMC accepts MoF’s offer to take over SMART

 

KUALA LUMPUR (July 6): MMC Corp Bhd has accepted the offer by the Ministry of Finance Inc (MoF Inc) to acquire the group’s 50% equity interest in Syarikat Mengurus Air Banjir & Terowong Sdn Bhd for RM184.5 million cash. 

The takeover is part of Putrajaya’s offer to take over four tolled highway concessionaires under Gamuda Bhd and Lingkaran Trans Kota Holdings Bhd for RM6.2 billion. 

Syarikat Mengurus Air Banjir & Terowong, the concession of the Stormwater Management and Road Tunnel (SMART), is a unit of Projek SMART Holdings Sdn Bhd. 

Projek SMART Holdings is a 50:50 joint venture between MMC Corp and Gamuda Bhd.  

Gamuda had already announced on June 27 that it will accept MoF’s offer, which underlined RM369 million cash for SMART’s takeover alone. 

MMC, in a filing yesterday, said the acceptance of the offer is subject to finalisation of the terms and conditions of the definitive agreement to be executed. 

“MMC will make further announcements, if there are material developments on the above matter,” it added.  

In a note dated June 25, Kenanga Research said it expects a loss on disposal of RM20 million to MMC on the deal, although it pointed out that the takeover is to be positive, since SMART has been reportedly bleeding for the past three financial years. 

Shares of MMC lost 3.28% or four sen to close at RM1.18 yesterday, giving the group a market capitalisation of RM3.56 billion.

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