Selangor offers RM5bil to take over water ops

  • Business
  • Saturday, 14 Feb 2009

THE Selangor government has offered a total of RM5.184bil to Puncak Niaga Holdings Bhd’s units and Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (Splash) to take over their water assets and operations.

Puncak Niaga Holdings Bhd says in a filing to Bursa Malaysia that its wholly-owned subsidiary, Puncak Niaga (M) Sdn Bhd (PNSB), and its 70%-owned Syarikat Bekalan Air Selangor Sdn Bhd (Syabas) had received contracts totalling RM3.11bil from the Selangor goverment.

PNSB received a RM1.6bil contract from Selangor for taking over all water assets and operations of PNSB without any liabilities to be assumed by the Selangor government.

Puncak says the offer price of RM1.6bil is based on the valuation of the water assets of PNSB as at Dec 31, 2007.

Meanwhile, Syabas was offered a RM1.512bil contract. The offer price to Syabas was based on cash value and payment to be made by taking over all water assets and operations of Syabas by the state government.

Apart from the calculations on how the amount was derived, no further details were given.

“Both PNSB and Syabas are given till Feb 20 to revert to the Selangor government on the respective offers before negotiations commence towards a mutual agreement on the terms of the offer,” it says in the statement.

Puncak says the board and the management of PNSB and Syabas would review the offer.

Gamuda Bhd, which has a 40% stake in Splash, says in its statement to Bursa Malaysia that Splash had received an offer price of RM2.06bil. This is based on cash value and payment to be made by taking over all of Splash’s water assets and operations without the Selangor government assuming any liabilities.

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