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Cerah Sama owns Grand Saga Sdn Bhd, the concession holder of the 11.5 km Cheras-Kajang Highway in Malaysia.
Cheras-Kajang Highway was completed in 1998. It is among the first four-lane dual carriageways in Malaysia, stretching from the Connaught Interchange, Cheras to Saujana Impian, Kajang. In 1995 the Malaysian government awarded a 30-year concession to Grand Saga to upgrade and maintain the Cheras-Kajang Highway, on a build, operate and transfer basis. The concession started from Sept 19,1995 and would last until Sept. 18, 2025, but it was extended to Sept 18, 2045.
The transaction value is estimated at about RM68.7 million (US$21.5 million). This transaction will reduce Taliworks' stake in Cerah Sama from 55% to 23.15%. The other shareholder of Cerah Sama is Singapore-based South East Asian Strategic Asset Funds LP.
Mohamad Nasir Ab Latif, EPF's CEO, commented:
This investment is in line with our objectives of growing mature infrastructure assets which have strong predictable cash flows.
Lim Yew Boon, Taliworks executive director, stated:
We are excited about the prospects of our Pinggiran Infrastructure joint venture having seeded it with our effective 65% interest in our toll road division, Cerah Sama, and the partnership with EPF. We expect it to contribute positively to the growth and earnings of the company going forward.
In 2007 Taliworks Corp Bhd bought 55% of the asset for a total consideration of RM55 million (US$17 million).