Bina Puri to dispose of entire 50% stake in KL-Kuala Lumpur Expressway

KUALA LUMPUR: Bina Puri Holdings Bhd has proposed to dispose of its entire 50% equity in KL-Kuala Lumpur 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 highway.

Bina Puri said in a stock exchange filing the proposed disposal is expected to result in a one-off pro forma gain on disposal of about RM74.9mil, after deducting tax and estimates expenses.

In its rationale for the disposal, it 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.

Further, through the proposed disposal, the group is able to raise total cash of RM77mil to partially repay trade and revolving credit facilities, which in turn could strengthen the group’s financial footing through reduced gearing ratio and overall financing costs.

Barring any unforeseen circumstances, the proposed disposal is expected to be completed by the second quarter of 2026.