PLUS Expressways BHD. Malaysia?s biggest toll highway Operator, is taking over a smaller rival from MMC Corp Bhd for RM134 million cash.

PLUS has agreed to buy Konsortium Lebuhraya Butterworth-Kulim Sdn Bhd (KLBK), the concessionaire for the 17km Butterworth-Kulim Expressway.

The purchase will be funded with borrowings.

PLUS will pay a deposit of RM13.4 million, or 10 per cent of the purchase price. The balance of RM120.6 million will be paid within 15 days once the conditions of the deal have been fulfilled.

The Purchase price includes a shareholder?s advance owing by KLBK to MMC amounting to RM85.4 million.

The Butterworth-Kulim Expressway will complement PLUS North-South Inter-urban Toll Expressway as it is connected at the Seberang Jaya interchange.

KLBK's concession expires in 2026.

The proposed acquisition will also help PLUS meet its key performance indictors, particularly growth in total lane-kilometers and revenue from new business.

The proposed acquisition is expected to be completed by the first quarter of 2008.