Asas Serba Sdn Bhd is still awaiting the government's decision on its proposal to take over toll concessionaire companies in the country.

At a media briefing in Kuala Lumpur today, company director Ibrahim Bidin said the proposal has been submitted to the Ministry of Finance, Works Ministry and Prime Minister's Department.

He said Asas Serba would set up a concession company to issue dividend bonds of up to RM50 billion to finance the acquisition of all toll roads.

The dividend bonds, he said, would be issued with tenures based on the projected cash flow statements of the existing toll concessionaires.

"The dividend bonds will pay annual dividends of seven per cent plus share of profits," he said.

Ibrahim said besides revenue from toll road operations, non-toll revenue would also be explored.

He said Asas Serba proposed a 20 per cent discount from the current toll rates and there would be no more rate increases.

"The government will no longer have to bear the burden of toll rate subsidy since there will be no rate increases.

"With the lower toll rates, it is expected that the distance travelled per vehicle will increase. The longer distance travelled will also increase the revenue generated per vehicle," he said.

Ibrahim said the expected savings would come from the consolidation and streamlining of operations.

"It is estimated that possible savings on subsidies payable by the government will amount to RM114 billion," he said.

Asas Serba, Ibrahim said, would also proposed that low-income earners be given toll rebates.

He said the company's proposal would also take into consideration issues affecting stakehholders.

"Banks and lenders will be repaid under the proposal. Current lenders can either cash out, reinvest in the dividend bond or stay as lenders in the existing concession company," he said.

The current shareholders of the concession companies, he said, would be given the option of either investing in the dividend bond, investing as shareholder of the new concession agreement or to cash out.

Ibrahim said discussions were held with several parties who could be potential shareholders with Asas Serba.

He said foreigners would also be allowed to be bondholders.

"Shareholders can subscribe the required equity value of up to ten per cent of acquisition costs," he said.

A few toll road companies had shown interest to sell, he said.

The new company, he said, would sign a new concession agreement with the government based on the proposal.

Ibrahim said Halim Saad, former executive chairman of Renong Bhd, the previous owner of PLUS, was not involved in the proposal to take over PLUS.

"Halim is not involved. At the moment, there only four of us," he said, adding that the company would open its doors and consider requests if he was interested.

The other three directors of Asas Serba are Sepang Aircraft Engineering Sdn Bhd chief executive officer, Syed Budriz Putra, the Kuala Lumpur Malay Chamber of Commerce president, Syed Amin Aljeffri, and former director of Babcock & Brown and Fieldstone International, Wan Kamaruddin Wan Mohamed Ali.

Halim had denied any link to this proposal.

Meanwhile, chairman of Asas Serba, Syed Amin, said the proposal for the takeover has been brought to the attention of the Prime Minister Najib Abdul Razak last year.

"As this involves national interest, governnment clearance must be obtained first," he said.

PLUS Expressways Bhd, in response to Asas Serba's media conference, said as a policy, it would not comment on proposals or information reportedly submitted to other parties, in this case the government.

"At this point, PLUS is not a party to any proposal, statements or considerations by other parties with regard to this matter," it said in a statement.

UEM Group, a company controlled by Khazanah Nasional Bhd, has substantial stakes in PLUS, the largest toll expressway company in South-East Asia and one of the largest in the world by market capitalisation.

- Bernama