corporate

EPF, Ekovest considering listing of DUKE highway concessionaire

KUALA LUMPUR: Ekovest Bhd and the Employees' Provident Fund today announced that they are evaluating various viable options for Duta - Ulu Kelang Expressway (DUKE) concessionaire Konsortium Lebuhraya Utara-Timur (KL) Sdn Bhd (Kesturi), including a listing on the stock exchange.

EPF owns a 40 per cent interest in Kesturi, while Ekovest owns the remaining interest.

The EPF purchased a 40 per cent in Kesturi from Ekovest in 2017 for RM1.13 billion. Kesturi holds a 54-year concession for DUKE, a 34-kilometre highway comprising two phases.

According to a filing with Bursa Malaysia Securities Bhd, Ekovest said it and the EPF are evaluating various viable options together to implement the "exit event" or any alternative plan in the best interests of the parties.

The exit event referenced to in proposals Ekovest set out in November 2016 refer to a listing of Kesturi on a local or foreign stock exchange.

According to the details of the proposal outlined in an announcement made in November, 2016, the EPF is entitled to a guaranteed return rate in the event that Kesturi is listed on the stock exchange.

Ekovest said in its filing with Bursa Securities Bhd that it had received approval from the EPF for a one-year extension with an automatic extension for an additional year for the "extended exit date" under the shareholders' agreement to Feb 12, 2026.

The company said it will make the requisite announcement if there is any material development on the above.

Ekovest's share price was up 2.86 per cent or 1.5 sen to 54 sen as at 10.30am, valuing the company at RM1.5 billion.

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