UEM Land disposes of 20% stake in TnG to PLUS for RM33.406 mil

KUALA LUMPUR: UEM Land Holdings Bhd is proposing to dispose its entire 20% equity interest in Touch `N Go Sdn Bhd (TnG) to PLUS Expressways Bhd for RM33.406 million.

The proposed disposal is expected to result in a net gain of RM26.4 million, it said in a filing with Bursa Malaysia today (April 28).

UEM Land said the move was part of efforts to focus on its core business of property development.

Proceeds from the disposal will be used for the group’s property development expenditure and working capital, or held in interest-bearing bank deposits and/or money market financial instruments.

It expects the transaction to be completed in the third quarter of this year.

In a separate filing, PLUS said the proposed acquisition will allow it to have a role in the future strategic business decision of TnG, which will allow the latter to achieve its growth aspirations.

PLUS noted that its group of companies currently contributed substantially to TnG's revenue through electronic toll collection commission revenue.

It said the transaction is expected to improve its value chain as well as to broaden its recurring earnings base, which is currently derived primarily from the expressway business.

It would also provide the PLUS Group the opportunity for an early participation in the upside potential of TnG arising from the positive outlook of the micro Electronic Payment System market, in line with the government's initiative to promote a cashless payment society in Malaysia. -- Bernama
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