Holders of System Lingkaran-Lebuhraya Kajang Sdn Bhd's (SILK) Islamic bonds (sukuk) have approved the sale of SILK Holdings, the concession holder of the 37 km Kajang Traffic Dispersal Ring in Malaysia, to IJM Corporation.

The transaction value is estimated at RM395 million (US$118 million) to be paid in cash. 

According to sources the sale will enable Silk Holdings to concentrate on growing its oil & gas support-services business.

The development of the road was largely financed by RM2 billion worth of sukuk in 2001. Holders of SILK's RM2 billion sukuk include CIMB Bank Bhd, Bank Islam Malaysia Bhd and Etiqa Takaful Bhd.

SILK Highway is the 37 km highway concession which was awarded by the Government of Malaysia to SILK pursuant to a concession agreement executed in 1997. The road links the northern and southern parts of Kajang, Selangor.

Under the concession agreement, SILK was to finance, design, construct, operate and maintain the SILK Highway for a concession period of 33 years.

The initial concession period was extended on 1 August 2001 to a total concession period of 36 years that will end on 31 July 2037.

According to SILK's annual report, the PPP road project recorded total traffic volume of 62.9 million vehicles for fiscal year 2013 (ended in July), an increase over the total traffic volume of 55.7 million recorded in the previous financial year.

The expressway utilizes the Touch 'n Go and Smart TAG electronic payment systems.