Bina Puri Holdings Bhd has agreed to dispose of its 50% stake in the concessionaire of the KL–Kuala Selangor Expressway (Latar) to Datuk Mohamed Raffe Chekku for RM77 million.
The construction group signed the agreement with Arena Irama Sdn Bhd, a company owned by Mohamed Raffe, which already holds the remaining 50% stake in Kuala Lumpur–Kuala Selangor Expressway Bhd (KLKSE). KLKSE operates the Latar concession, which runs until 2048.
In a filing with Bursa Malaysia on Thursday, Bina Puri said it decided to exit the concession as KLKSE has not declared any dividends since the project was awarded in 1997.
Executive director and group CEO Marcus Goh Kee Lun said the disposal provides a timely opportunity for the group to unlock the full value of its investment in KLKSE, generating an estimated gain of about RM74.9 million.
Proceeds from the sale will be used to repay bank borrowings, strengthening the group’s financial position. Following the disposal, Bina Puri’s gearing ratio is expected to improve significantly to 0.81 times from 1.8 times.
Goh added that the group is targeting completion of its proposed scheme of arrangement by the first quarter of 2026.
As at end-December 2024, KLKSE recorded accumulated losses of RM234.2 million, with total assets of RM1 billion and liabilities of RM1.18 billion.
Bina Puri said the RM77 million consideration falls within the lower end of the valuation range of RM76.3 million to RM110.9 million, as assessed by Deloitte Malaysia. The valuation was based on a discounted cash flow method, applying a weighted average cost of capital of approximately 8% to 9% for the period from Jan 1, 2026 to Oct 27, 2048.
The proposed disposal, which requires shareholders’ approval as well as consent from KLKSE’s financiers and the government, is expected to be completed by the second quarter of 2026.
Bina Puri’s shares closed unchanged at 30 sen, giving the company a market capitalisation of RM267.89 million.
