Today, we are told, Asas Serba is sticking to their guns!

Does this mean that the Najib Administration is actually even considering them to begin with?

We leave it to you….. but this was carried on Taikors and Taikuns today…

ASAS SERBA STICKS TO BUYOUT OF 23 TOLLED HIGHWAYS

KUALA LUMPUR. Oct 27: Asas Serba Bhd will submit a fresh bid to the government to acquire in one sweep all 23 tolled highways in the country, though pricing of the proposed acquisition is being reworked, its Chief Executive Ibrahim Bidin said.
“We have yet to finalise our offer and the proposal still remains unchanged. The offer is similar as before, that is taking over the country’s tolled highway with the same funding mechanism in cash and bonds,” Ibrahim Bidin said

The bid to take over the 23 tolled expressways includes the four currently operated by PLUS Expressways Bhd for which UEM Group Bhd and the Employees Provident Fund have offered to acquire at RM4.60 per share, valuing PLUS at RM23 billion.

Head of Kenanga Research Yeonzon Yeow said Asas Serba’s proposal is likely to be rejected by key PLUS shareholders since the controlling majority is  made up of Khazanah UEM and EPF, who between them control 68%.

While unveiling Budget 2010, the Prime Minister announced there will be no toll rate hikes in the next five years on highways operated by PLUS Expressways Bhd. The move is aimed at rationalising toll structures in the country to benefit all stakeholders and reduce the burden of the rakyat

Yeow went on to say it makes little sense for PLUS to consider Asas Serba’s impending proposal after UEM and EPF had forged ahead with a special purpose vehicle to take over the highway operator. “Although the board is likely to evaluate all bids, the bids have to be credible.”

Meanwhile, an investment banker said for Asas Serba to make a counter-offer that makes sense, it needs to better the current cash offer of RM4.60 a share.

“Asas Serba  does not have any PLUS shares, so this means they need to raise more than RM23 billion against a competing offer of RM4.60 by UEM and EPF.  On the other hand, to take out the minorities, UEM and EPF would only need to raise RM11 billion and considering the nature of who they are, it is not a problem,” he said.

On whether Asas Serba will be increasing the offer price of RM4.60, Ibrahim Bidin declined to answer.

As to its ability to raise the RM50 billion it  has offered the government for all the country’s tolled highways, the investment banker said, ”The Malaysian government raises about RM50 billion in bonds annually and for a company with no track record to do likewise is next to impossible.

“Let’s use another measure. The two largest banks, Maybank and CIMB, have a loan book of RM206 billion and RM142 billion respectively. Asas Serba’s funding needs would amount for 10% of their combined loan book.”

He added that EPF has the strongest financial resource in the country and its partnership with UEM is more appealing to bankers and the government alike.

On the viability of Asas Serbas’ proposal, the banker said that PLUS’ current revenue net of compensation is RM2,366 million. “Its cash operating expense accounts for 25% of revenues, its interest payment on its existing debts amount 30%, capital expenditure 30%. So if you cut revenues by 20%, how would it be able to repay its existing debts,” he asked.

A search with the Companies Commission shows Asas Serba financials recording a pre-tax loss RM6,511 against the absence of any revenue. It has a share capital of RM10,000 against current assets of RM7,746.

Asas Serba Watch believes that the game is up for Asas Serba, and this is agreed by analysts who are closely (still watching!) following the PLUS/UEM takeover.

Today, The Star reported this ‘Analysts:Asas Serba unlikely to get PLUS Expressways‘, so before we bid them adieu, let’s recap how it all started….

May 2010 – We started this blog to tell you, the Rakyat about a pack of wolves sniffing around PLUS Expressways. (carried by local paper The Star)

May 2010 – Blogger Syed Akbar Ali (former investment banker) gives his views on Asas Serba

June 2010 – NST’s Syed Nazrin gives Asas Serba a glimmer of hope

June 2010 – Asas Serba Watch gives Asas Serba the finger! (and the Rakyat too!, heck even the Headhunter himself!)

July 2010 – We told you about Asas Serba, and we aim to SMASH any cronies who think that they can benefit from us!

September 2010 – Impending budget, cronies revisited…

October 2010 – Last shot lah macha!

In fact, the battle is not over yet is it? SMASH has not exited really, they have just set their eyes on the bigger cake! We aim to still keep these buggers at bay…..and we are not done yet!

The suspension of PLUS shares the day before was seen as a sign that the announcement of an imminent takeover would happen. And indeed it has, (read press release carried by TnT  here)

TnT was the man source of information carried on the Toll operator for the past few weeks, and with MMC making the headlines too, it was a bet that no one would want to go against.

Asas Serba made a stir, with a piece pubished in Malaysian Reserve, to position themselves as the alternative.

But thanks to Asas Serba and MMC, the Rakyat will emerge the winner.

So the next time you read a piece in the papers about an attempt by a former crony to muscle his way back to power, fear not, the government does have ears, and you can rest assured that there are some people up there that knows that the rakyat comes first.

Thanks UEm and EPF. Now after the 5 years of no toll hike is up, remember, the power still rests with the Rakyat!!

Halim is back!

Having publicly denied that he was behind the Asas Serba Proposal (eventhough it was fronted by three of his former lieutenants) Halim Saad went through ‘great pains’ to describe to a team from The New Straits Times how he was grossly mistreated by the previous administration.

He named Tan Sri Nor Mohamed Yakcob as the key person in blocking his General Offer for takeover of Renong and UEM.

And why now after the long silence Halim?

It seems there is a certain rumbling on the ground that Syed Mokhtar has been openly perceived as the front runner albeit the denials from the government of the Plus takeover.

So in a calculated move, Halim is now appearing from the shadows to put himself in better light, after all, the market and general public sentiment is that he is in the same ‘class’ as Tajudin Ramli (of MAS and Celcom fame).

By the way, rumour has it that Tajudin Ramli is on a farm tending to throughbreds….

Back to the issue of Halim. In his carefully thought out ‘interview’ with NST, he went on further to distance himself from the Renong/UEM saga that had most people cursing him. Who can forget the debacle eh? So having bought himself some nice shopping centres, it seems he is now more interested in ‘clearing’ his name.

I dunno about you, but it all looks to me like he is lining up something major.

Honestly, here in Asas Serba Watch, we wish him the best, but lay off PLUS!

Once is more than enough! If we cannot have toll reductions, the least we can hope for is to keep it the way it is!

Whichever the case, Asas Serba Watch aims to take this site to a whole new level!

Keep coming back to find out more on how you too can be a part of this to stop this plunderers from ripping us off!

Take for example, some minor jockeying for position in the political parties, Murugiah to MIC and now Peter Pang does a Peter Pan. Let’s not even talk about Taib and the Sarawak Elections (next change).

Ahh…all that talk and no one has even bothered to keep this big pie within earshot! So Madey was right! Kita semua mudah lupa!

Well guess what!

We have not!

We are your eyes and ears to ensure that no Ali Baba can whisk away our roads without first answering to US! The Rakyat!

Guessed you must have missed this late August! After all, it was in the chinese papers!

reproduced without permission!

SMAB SUBMITTED PROPOSAL TO TAKEOVER ALL TOLL CONCESSIONS WITH RM25 BILLION IN THE LAST TWO MONTHS

Nanyang – News, August 25 ’10

According to a source, a few highway concessions has received takeover proposals from SMAB besides PLUS.

However, the highway concessions said that it is not positive for SMAB to persuade government to consider the takeover plan due to bank financing and bond issue matters.

“Even if the government is willing to deal with SMAB but it will need a few years as it is a complicated plan and the issue cannot be settled by money only.”

In addition, the source also highlighted that Renong is interested to bid for some highway concessions because Renong is a shareholder for PLUS.

The source also highlighted that the reason for the government not willing to announce for the toll hike is to give  time to process the takeover plan.

“JKR received SMAB’s takeover proposal but it is under EPU, and JKR refuse to give comment of the takeover plan.”

Keep your browser peeled here and be the first to know which way the wind blows!

‘LEKAS, KASI HANTAM’ translated to English literally would mean, ‘Quick get Smashed’!

Today, Works Minister was reported to have said that seven highways will be built under the 10th Malaysia plan. It was reported that the toal of the seven highways will cost some Rm19 billion. Read here for the Malaysian Insider report.

Seven for RM19 Billion. It is after all much needed infrastructure for the continued development of Malaysia.

But this is just the cost of building isn’t it?

So what happened to the RM45B proposal?

We are all for development, and better highways can only be a catalyst for growth, and that is what countries like Indonesia cannot do in a short time to compete with us.

So again, how is it possible then to take over all existing highways for RM45B??? or RM50B???

The ASW site here aims to step up a notch and perhaps put form to function and register a support group that aims to question all this proposals and more importantly safeguard our interest by keeping the cost down if not reducing the cost of highway usage.

Keep your eyes here for more!

The recent news that billionaire Syed Mokhtar Albukhary has pitched his bid to EPU to take over the country’s toll roads to the tune of RM45 billion, is an example of this practice of cronyism.

This comes in the face of a former attempt worth RM50 billion by Asas Serba, believed to be backed by Halim Saad and his Renong boys.

Cronyism exists in many forms and guises in many countries, but none is practised as blatantly as in Malaysia.

Mention mega-millionaire such as Halim Saad, Tajuddin Ramli and Amin Shah, and immediately what jumps to mind is their corporate failures only to have the government using lots of tax payers’ money to mop up their financial sorrows.

Those who thought the bail outs in the early 1990s would mark the end of the crony era, were very wrong.

Just like with every bad movie, there is always a sequel. Halim and his ex-Renong merrymen are back again, without any regard for the mess they had created the last time around.

Meanwhile, Syed Mokhtar had a little hiatus but he too is back. Not only does he have a monopoly over the country’s rice supply, but also a partial monopoly over sugar and now he is gunning for a monopoly over the country’s toll roads.

Godzilla is back. This time, he is also chomping up the MRT system and not happy with what’s above ground, he is also vying for the underground tunnel system.

How much more does a man need or is enough never enough?

At the rate we are churning out and reviving the same cronies, never mind NEP, even the New Economic Model will never be achieved.

Worse than that, it destroys business and the merit of competitiveness.

Remember the school bully everyone hates? It’s the same. The moment anything is successful, a crony comes and takes it away, before destroying the business completely.

At the end, no one wins. But the innocent tax payers will have to pay over and over again for these bullies who never get taken down because the school master chooses to turn a blind eye.

Macam aci?

Maybe Syed Mokhtar should invest in an aquarium to see if either he or Ibrahim Bidin will win in their proposals to takeover PLUS.

It’s all still a haze, if we are to believe what was told to YB Wee Choo Keong – Wangsa Maju in Parliament last week.

Then again, the G-Man has been known to turn around quite quickly when it comes to certain decisions.

So, it’s not just us who have an insight to all these proposals, as Business Times carried the news today. (Psst….Don’t tell anyone but I am quite certain BT was referring to the other blog….)

At least now, they know that WE ARE WATCHING them closely.

Oh ya….one more thing…….We have one more piece of news……do come back to find out about this juicy nice one that may be a little grainier than others.

By Zuraimi Abdulla - Business Times

It is hoped that if privatisation proposals are accepted, they will not involve the government in providing guarantees to the companies HIGHWAYS, like our backbone, are an essential.

So when an unknown private company said last year that it wanted to buy over all tolled highways in the country and offered a sweetener that it would cut toll rates, the proposal raised eyebrows.

Hardly surprising, many were sceptical that the proposal would work.

To cut the story short, the proposal by Asas Serba Sdn Bhd got shot down by most Malaysians, albeit it is still tagged “KIV” by the government. We now have another proposal to “lessen the government’s obligation to highway concessionaires and the public’s toll burden”.

It is from a company backed by elusive tycoon Tan Sri Syed Mokhtar Al-Bukhary, according to a blog that broke the story late last week. The proposal had been submitted to the Economic Planning Unit (EPU) a few weeks back, the blog noted.

The company’s proposal is nearly a carbon copy of Asas Serba’s. In essence, it reportedly offered to take over all tolled highways for RM45 billion and cut toll rates by 10 per cent.

Like Asas Serba, it is also promising that there will be no toll rate increase. In comparison, Asas Serba’s offer encompasses a RM50 billion price tag for all the highways, a 20 per cent toll discount across the board and no toll rate increase over the concession period.

The latest bid will surely rekindle a national debate on the highway privatisation issue. And, as in the case with Asas Serba, a major point of contention will be the wisdom of letting a single company control the massive business and how on earth is the potential operator going to pay for all the concessions. To many, it is not a good idea to create a monopoly. Monopoly leads to abuse of dominant positions and anti-competition.

Plus, it will send the wrong signals to foreign investors and is not in sync with the reforms undertaken by the government to transform the economy.

But, then again, it is not fair to prematurely rule out these proposals to privatise our highways until we know the details. This means knowing about the business and financing models, among other things.

The details may be known only by the EPU’s top brass (or some people at the Ministry of Finance). Perhaps, the company’s management will hold a media conference soon to lay bare what the public will want to know about its bid.

For now, we can only hope that if these privatisation proposals are accepted, they will, firstly, not involve the government at all, including in providing any form of guarantees to the companies; and, two, not sacrifice the good services being provided by the existing concessionaires.

SMASH PLUS? So who is this SM?

Pun intended, this writer seems to think that Syed Mokhtar Al-Bukhary Serba Highway might just smash PLUS!

Let’s recap;

Asas Serba’s proposal:

1. RM50B to take over all assets of highway concessions
2. 20% toll reduction across the board

And this is Syed Mokhtar’s purported proposal:

1. RM45B to take over all assets of highway concessions
2. 10% toll reduction across the board
3. NO toll increases ever on the remaining years of concession

Looking at the recent emergence of this ‘mirror’ proposal (and it’s no wonder how certain details of proposals can just find their way to rival bids…), I will bet that Syed Mokhtar will see himself as the front runner given his seemingly magical hands in making a living of privatisation of government assets.

Funny how this seems to me like ‘Die Hard part 4′!

Is it just me or did someone just say ‘please Mr.Tycoon, we NEED you now!’ First Halim Saad’s very possible link with Asas Serba and now Syed Mokhtar.

Are we really that short of ideas and home grown saviours?

Word has it that the SM proposal was submitted to EPU some two weeks back…..Hmmmm! EPU is that Yackob guy! Hmmmmm.

Watch this site closely though, because we know something is gonna happen, and given the ‘I’m in’ ante, I won’t discount any other players too!

Could it be that Syed Mokhtar and Halim Saad are bed mates? Maybe it’s Syed Mokhtar Asas Serba Highway!

Or maybe its just Syed Mokhtar’s way of getting back at his lost opportunity in the double tracking censure of his company.

Whichever way you look at it, we have two cronies coming back to take a bigger bite at the cake!