HIGHWAY TOLL CONCESSIONAIRE,
OPERATIONS AND MAINTENANCE OPERATOR

Taliworks owns and operates two highways, specifically the Cheras-Kajang Highway, also known as Grand Saga Highway and the New North Klang Straits Bypass Expressway, or commonly referred to as the Grand Sepadu Highway.

Grand Saga Sdn. Bhd. (“Grand Saga”)

The acquisition of the 55% equity interest in a joint venture company, Cerah Sama Sdn. Bhd. (“Cerah Sama”) in 2007 marked Taliworks’ first venture into highway ownership and toll operations. Cerah Sama is the holding company of Grand Saga, a company that owns and operates the concession for the Grand Saga Highway until September 2045. The highway, one of the first four-lane dual carriageways in Malaysia measures 11.5 km in length, stretching from the Connaught interchange, Cheras to Saujana Impian, Kajang. It serves the densely populated and fast-growing Cheras-Kajang vicinity, easing traffic congestion and reducing travel time for daily commuters. The highway concession comprises two toll plazas (with toll collection at one bound), namely the Batu 9 toll plaza (Kajang bound) and the Batu 11 toll plaza (Kuala Lumpur bound), one rest and service area and nine interchanges.

2014 marked Taliworks’ first collaboration with Employees Provident Fund Board (“EPF”) through EPF’s acquisition of an effective 31.85% equity interest in Cerah Sama via TEI Sdn. Bhd. (“TEI”). TEI is the immediate holding company of Cerah Sama, was established as the flagship vehicle through which both parties can engage in the business of acquiring and operating mature cash- generating utilities/ infrastructure assets in Malaysia and developed countries. In 2015, TEI acquired the remaining 35% equity interest in Cerah Sama held by SEASAF Highway Sdn. Bhd.. TEI is currently 51% held by Taliworks and 49% by EPF.

Grand Sepadu (NK) Sdn. Bhd. (“Grand Sepadu”)

In December 2014, Taliworks through its indirect joint venture, Grand Sepadu acquired the assets and concession rights to the New North Klang Straits Bypass Expressway (“Grand Sepadu Highway”) from Lebuhraya Shapadu Sdn. Bhd. (in liquidation) for a cash consideration of RM265 million with 18-year remaining concession ending in December 2032. The Grand Sepadu Highway, which commenced toll operations in 2002 is a 17.5 km two-lane and three-lane dual carriageway highway, which links North Port to Bukit Raja, Klang. The Grand Sepadu Highway is partly parallel to the old tolled North Klang Straits Bypass (which became a non-tolled road after the Grand Sepadu Highway became operational) and is linked to the Federal Highway, the new Klang Valley Expressway and the West Coast Expressway, which connects Banting in Selangor to Taiping in Perak.

Subsequently in 2015, EPF acquired a 50% equity interest in Pinggiran Muhibbah Sdn. Bhd., a company which holds a 75% equity interest in Grand Sepadu. As a result, Taliworks and EPF now effectively own 37.5% equity interest each in Grand Sepadu, with 45% economic interest each in the Grand Sepadu Highway. This officially marked the second partnership between Taliworks and EPF.