Posted on 21 Sep 2015
SILK, the concession holder for the 37km Kajang Traffic Dispersal Ring Road (Kajang SILK Highway), had a 33-year concession to operate and maintain the highway. The concession period would end on July 31, 2037.
Speaking to reporters after the company's EGM last Friday, its executive director Lim Yew Boon verified a recent report that claimed both companies were in exploratory talks on the proposed highway concession transaction.
"It is still at the exploring stage. If there is anything solid or finalised we will make proper announcement," Lim said.
"Any highway or project that is in line with our investment strategy, we will explore," he added.
Previously, Silk Holdings and IJM Corp Bhd unit, Road Builder (M) Holdings Bhd, had aborted the sale and purchase agreement of the 100% stake in SILK for RM395 million.
It was called off following the non-fulfilment of certain conditions precedent within the agreed timeline, Silk Holdings told Bursa Malaysia.
Kajang Silk Highway serves townships connected to a number of other highways, including Taliworks' Cheras Kajang Highway.
It also serves the southeastern corridor of the Klang Valley, linking Balakong, Sungai Long, Kajang, Bangi, Serdang and Putrajaya.
Taliworks expanded into the highway business in 2007 via the acquisition of a 55% stake in Cerah Sama Sdn Bhd, with concessions for both Cheras-Kajang Highway and the New North Klang Straits Bypass Expressway.
Lim said the company is also eyeing other matured and cash-generating concessions, including assets in waste management, toll roads and power generation. However, he declined to reveal which company Taliworks were in discussions with.
"We are exploring various matured and cash generator, both locally and abroad," he said.
Meanwhile, Lim noted that the slump in ringgit would not have impact to the company's business and existing projects as all of its projects are fully funded.
"All of our projects are fully funded, therefore weakening of ringgit has no impact on our existing projects," he added, noting its construction business orderbook currently stands at RM300 million, which will keeps the company busy for two years.
He said the company is actively tendering for new projects, which are also backed by the 11th Malaysia Plan (11MP).
"Along the way, we will be participating in the tender of the 11th Malaysia Plan. The cake is big," Lim added.
For the second quarter ended June 30, 2015, Taliworks posted a lower net profit of RM9.49 million, down 26.8% from RM12.96 million a year ago. Revenue rose 24.3% to RM101.7 million from RM81.8 million a year ago.
