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HIGHWAY TOLL CONCESSIONAIRE,
OPERATIONS AND MAINTENANCE OPERATOR

Taliworks first ventured into highway ownership and toll operations when it acquired a 55% equity interest in Cerah Sama Sdn. Bhd. (“Cerah Sama”) in 2007. Cerah Sama is the holding company for Grand Saga Sdn. Bhd. (“Grand Saga”) (http://www.grandsaga.com.my), a company that owns and operates the concession for the Cheras-Kajang Highway until September 2045. The highway is one of the first four-lane dual carriageways in Malaysia and it measures approximately 11.5 km in length, stretching from the Connaught Interchange, Cheras to Saujana Impian, Kajang. Whilst plying the densely populated and fast growing Cheras-Kajang vicinity, it eases traffic congestion and minimises travel time for daily commuters. The highway concession comprises two toll plazas (with toll collection at one bound) i.e. the Batu 9 toll plaza (Kajang bound) and the Batu 11 toll plaza (Kuala Lumpur bound), one rest and service area and eight interchanges.

Subsequently in 2014, the Employees Provident Fund Board (“EPF”) acquired an effective 49% equity interest in Cerah Sama whilst Taliworks’ effective equity interest in Cerah Sama was reduced from 55% to 51%. The purpose of the collaboration with EPF is to position TEI Sdn. Bhd. (“TEI”), the immediate holding company of Cerah Sama, as the flagship vehicle through which both parties will engage in the business of acquiring and operating mature cash-generating utilities/infrastructure assets in Malaysia and in developed countries.

In December 2014, Taliworks through its indirect joint-venture, Grand Sepadu (NK) Sdn. Bhd. (“Grand Sepadu”) acquired the assets and concession rights to the New North Klang Straits Bypass Expressway (“NNKSB Expressway”) from Lebuhraya Shapadu Sdn. Bhd. (In Liquidation) for a cash consideration of RM265 million with the 18-year concession ending in December 2032.

NNKSB Expressway, whose tolling operations commenced in 2002, is a 17.5 km two-lane dual and three lane carriageway highway which links North Port to Bukit Raja, Klang. The NNKSB Expressway is partly parallel to the old tolled North Klang Straits Bypass (which became a non-tolled road after NNKSB Expressway became operational) and is linked to the Federal Highway, the New Klang Valley Expressway (“NKVE”) and in future, the upcoming West Coast Expressway, which will connect Banting in Selangor to Taiping in Perak.

In 2015, EPF acquired a 50% equity interest in Pinggiran Muhibbah Sdn. Bhd. (“Pinggiran Muhibbah”), a company that owns 75% equity interest in Grand Sepadu and a 90% economic interest in the NNKSB Expressway. This partnership resulted in EPF effectively owning 37.5% equity interest in Grand Sepadu and 45% economic interest in NNKSB Expressway and this marks the second partnership between Taliworks and EPF.