KUALA LUMPUR: Bina Puri Holdings Bhd
has proposed to dispose of its entire 50% equity in KL-Kuala Selangor Expressway Bhd (KLKSE) to Arena Irama for RM77mil cash.
Upon completion of the transaction, Arena Irama will hold 100% equity in KLKSE, the concessionaire of the 33km dual carriageway LATAR Expressway.
According to a statement issued by Bina Puri, the original cost of investment by Bina Puri for KLKSE was RM30mil. The estimated market value of KLKSE appraised by Deloitte Malaysia was RM152.6mil to RM221.8mil, based on 100% equity interest as at Dec 31, 2025.
Bina Puri intends to fully utilise the proceeds of the sale for partial repayment of its trade and revolving credit facilities with Alliance Bank Bhd. It said the outstanding amount of the facilities as at Jan 30, 2026, stood at RM109.36mil.
Following the partial repayment, Bina Puri’s gearing ratio will be reduced from 1.81 times (as at June 30, 2024) to 0.81 times.
Executive director and group CEO Marcus Goh Kee Lun said KLKSE may require a long gestation period to generate surplus income and cash flows for distributions to its shareholders.
This is taken in the context of Bina Puri's current net liability position and high debts level.
"Hence, the proposed disposal represents a timely opportunity for the Bina Puri Group to realise its entire investment value in KLKSE, which will enable the Group to achieve an estimated gain on disposal of approximately RM74.9mil.
"Concurrently, Bina Puri is engaging with its lenders and creditors to negotiate the terms of the proposed scheme of arrangement. We aim to complete this by the first quarter of 2026, whereby the group will come out stronger and be on better financial footing," he said.
Based on KLKSE’s latest audited statement of financial position as at Dec 31, 2024, KLKSE has accumulated losses of RM234.2mil, with negative equity of
RM174.2mil.
It has a total liability of RM1.18bil, with RM1.13bil or 95.8% held in the form of loans and borrowings.
