Bina Puri Holdings Bhd plans to sell its entire 50% stake in KL-Kuala Lumpur Expressway Bhd (KLKSE) to Arena Irama for RM77 million in cash. After the deal, Arena Irama will own 100% of KLKSE, which operates the 33km LATAR Expressway.
Bina Puri originally invested RM30 million in KLKSE. Deloitte Malaysia valued the expressway at RM152.6 million to RM221.8 million for full ownership as of Dec 31, 2025.
Proceeds from the sale will be used to partially repay Bina Puri’s trade and revolving credit facilities with Alliance Bank Bhd, which had an outstanding balance of RM109.36 million as of Jan 30, 2026. The repayment is expected to lower the group’s gearing ratio from 1.81 times to 0.81 times.
Bina Puri CEO Marcus Goh said the expressway would take time to generate meaningful cash flow, and the disposal offers an opportunity to realise the full investment value, with an estimated gain of RM74.9 million.
The group is also negotiating a scheme of arrangement with lenders and creditors, aiming for completion in the first quarter of 2026 to improve its financial position.
As of Dec 31, 2024, KLKSE reported accumulated losses of RM234.2 million, negative equity of RM174.2 million, and total liabilities of RM1.18 billion, of which 95.8% are loans and borrowings.
