(Bloomberg) -- Malaysian tycoon Lim Kang Hoo is exploring selling his toll road business in a deal that could value the assets at as much as 5 billion ringgit ($1.1 billion), according to people with knowledge of the matter.
Lim, the biggest shareholder of Kuala Lumpur-listed Ekovest Bhd., is working with a financial adviser on the potential divestment of a majority holding in closely held Konsortium Lebuhraya Utara-Timur (KL) Sdn., also known as Kesturi, said the people, asking not to be named as the process is private. The assets may attract interest from other industry players, the people said.
Shares of Malaysian investment company Ekovest reversed earlier losses and jumped as much as 10.8%, the biggest intraday gain since January, after the Bloomberg News report. The stock has fallen 19% this year, giving it a market value of 1.2 billion ringgit.
Ekovest owns 60% of Kesturi, while the remaining balance is held by Employees Provident Fund, the state-owned pension fund.
Deliberations are ongoing and Ekovest could still keep the assets, the people said. Representatives for Lim, Ekovest and Kesturi declined to comment.
Kesturi owns the concession for the Duta-Ulu Klang Expressway, which has 3 toll roads totaling 56 kilometers, one of the people said. Ekovest has approval from EPF to extend an exit plan for Kesturi to February 2026 and the parties are evaluating various viable options, according to a stock exchange filing.
--With assistance from Ram Anand and Anisah Shukry.
(Updates with share price reaction in third paragraph.)
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