Tuesday, January 11, 2011

Jelas Ulung explains why it failed to meet PLUS bid deadline

It was only two weeks ago that chairman Tan Sri Ibrahim Zain said Jelas would not have any problems meeting the conditions. Ibrahim explains the circumstances.
 
JELAS Ulung has failed to meet conditions to bid for PLUS Expressways Bhd as the deadline expired yesterday.

It was only two weeks ago that chairman Tan Sri Ibrahim Zain said Jelas would not have any problems meeting the conditions, which included a RM50 million deposit. Ibrahim explains the circumstances:

Question: Why complain of the conditions only now, on the day of the deadline?
A: We will try to comply, if possible, but our financiers told us it would be difficult.

Q : How can the offer still be valid if you cannot join the bid?

A: What we are saying is that our initial (RM26 billion) is still there, to consider if they want to.

Q: You mean should PLUS choose to disregard the conditions previously set?
A: Yes.

Q : So why say you can put up the RM50 million deposit a few weeks ago and say you cant, at the eleventh hour?
A: You see, it is not only the deposit, I don't know whether the type of judgement for the bids, is it based on price or other factors. So our advisers said, better not.

Q: Still, why wait for the eleventh hour then?
A: There is not only one party. We have mainly foreign financiers, and they don't work during Christmas and New Year.


Q: On the question of Bank Negara blocking your foreign currency financing on fears for fears of a recurrence of the 1997 crisis, is there any truth to that?
A: Actually, it is not fair to say that Bank Negara would block our deal. The structure was planned such that the foreign banks were only to come up with a guarantee to be used to obtain financing mostly from local banks.

Q: What percentage were you hoping to secure from local banks?
A: That question is really academic right now.

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