KUALA LUMPUR (Dec 9): Perak Transit Bhd (KL:PTRANS) said the Tanjong Malim District Council (MDTM) has agreed to its proposed collaboration to manage the Tanjong Malim bus terminal under a 30-year arrangement for a specified monthly rental payment.

While it did not disclose what the monthly rental will be, Perak Transit said in a statement that the collaboration is in line with its long-term plan to develop and operate integrated public transportation terminals nationwide. It also supports the group's asset-light model and is aligned with its corporate strategy of securing new terminal management contracts from third-party owners.

The group had received a letter from MDTM on Tuesday confirming the council’s in-principle approval for the partnership, with the final definitive agreement expected to be signed in the near term, according to executive director Datuk Cheong Peak Sooi.

The Tanjong Malim bus terminal is a double-storey facility built on a 1.20-acre site, with a gross built-up area of about 18,522 sq ft and a net leasable area of 8,279 sq ft for shops and kiosks.

Perak Transit’s core business involves operating integrated public transport terminals and providing public bus services. The group owns and operates Terminal Meru Raya in Ipoh, Kampar Putra Sentral and Bidor Sentral, and manages third-party terminals such as Terminal Sentral Kuantan in Pahang, according to its annual report. In recent years, it has also diversified into property-related ventures and renewable energy.

On Monday, the group announced the establishment of a RM1.5 billion sukuk wakalah programme to fund capital expenditure, working capital and refinance its existing facilities.

The group was in the spotlight two months ago after a sharp selldown in its shares triggered an unusual market activity (UMA) query from Bursa Malaysia.

The decline stemmed from the forced selling of shares related to its major shareholder Datuk Seri Cheong Kong Fitt, whose stake has fallen to 9%. Cheong used to own 23.5% of Perak Transit, which derived its income primarily from rents and advertisements at its transport terminals.

Shares of Perak Transit, which have continued to drop since the October selldown — when it reached 33.5 sen on Oct 22 — closed one sen or 3.64% higher at 28.5 sen on Tuesday, giving it a market capitalisation of RM343.21 million.