KUALA LUMPUR: PLUS EXPRESSWAYS BHD [] has proposed to buy a 20% stake in Touch 'N Go Sdn Bhd (TnG) for RM33.4 million from UEM LAND HOLDINGS BHD [].

PLUS said on Wednesday, April 28 the purchase price was based on the potential earnings and business prospects of TnG.

The highway concessionaire intends to finance the proposed acquisition via internally generated funds. Presently, the group of companies contributes substantially to TnG's revenue through electronic toll collection commission revenue.

"The proposed acquisition will allow PLUS Expressways to have a role in the future strategic business decision of TnG, which will allow TnG to achieve its growth aspirations," it said. To recap, TnG was incorporated in 1996 as Rangkaian Segar Sdn Bhd which was subsequently changed to Touch 'n Go Sdn Bhd in 2008.

TnG has an authorised share capital of RM25 million comprising 25,000,000 ordinary shares of RM1 each and issued and paid-up share capital of RM16.67 million comprising 16.67 million RM1 shares.

TnG is currently the sole electronic toll collection operator on highways and is also acknowledged as the Common Ticketing System (“CTS”) for major modes of public transportation in the Klang Valley.

Based on its audited financial statements for FY ended Dec 31, 200, TnG's net profits and net assets were RM15.6 million and RM35.0 million respectively.