KUALA LUMPUR (Nov 15): Prolintas Infra Business Trust (KL:PLINTAS) said it will not face any financial losses after its subsidiary, Prolintas Expressway Sdn Bhd (GCE Co), was ordered by an arbitrator to pay RM46.13 million to Bina Puri Holdings Bhd’s (KL:BPURI) associate company KL-Kuala Selangor Expressway Bhd (Latar).
This, it said, is because the major unitholder of the trust, Projek Lintasan Kota Holdings Sdn Bhd (PLKH), had previously agreed to indemnify the trustee manager, Prolintas Managers Sdn Bhd, against any losses incurred and made against GCE Co from the arbitration case.
It added that Prolintas Managers is in consultation with its legal advisers to determine whether to file for a stay of execution of the arbitrator's decision.
GCE Co is the toll concessionaire of the 25km-long Guthrie Corridor Expressway, which has three open system toll plazas. The highway, which started operations in 2005, contributed about 29% of Prolintas Infra’s total toll revenue in the third quarter ended Sept 30, 2024 (3QFY2024).
Meanwhile, Bina Puri owns a 50% stake in Latar, the toll operator of the 33km-long Latar Highway, which spans from the north of Templer Park, Rawang to Assam Jawa in Kuala Selangor. This highway, which opened in 2011, has three toll plazas.
The arbitral proceedings at the Asian International Arbitration Centre filed in 2019 was over a dispute involving a cost-sharing agreement entered into by the two parties, under which GCE Co claimed RM80.1 million from Latar, and Latar claimed RM74.9 million from GCE Co.
On Wednesday, the arbitrator allowed both the claims. As a result, after both awarded amounts were set off, GCE Co was required to pay RM46.13 million to Latar.
Prolintas Infra closed 0.5 sen or 0.5% lower at 94 sen on Friday, giving it a market capitalisation of RM1.03 billion.
Bina Puri, meanwhile, closed 0.5 sen or 1.7% lower at 29.5 sen, valuing it at RM199.08 million.