KPS more keen on Air Selangor's RM2.55b offer, Gamuda to review

  • Corporate News
  • Friday, 03 Aug 2018

The suspension could be possibly the resolution of the impasse in the Selangor water deal.

KUALA LUMPUR: Pengurusan Air Selangor Sdn Bhd's (Air Selangor) RM2.55bil offer for Syarikat Pengeluar Air Selangor Holdings Bhd (SPLASH)  seemed to have received mixed reception from the two major shareholders.

Gamuda Bhd said on Friday it would make the appropriate announcement in due course after going through due process internally and with its 40% owned SPLASH Holdings.

However, Kumpulan Perangsang Selangor Bhd (KPS) was more positive on  Air Selangor's offer for its 30% stake in SPLASH Holdings.

KPS chief executive officer Ahmad Fariz Hassan said:  “With the proposed acquisition by Air Selangor, we are a step closer to not only the resolution of the water sector restructuring in the state, but also a closure for us.”

Earlier on Friday,  SPLASH Holdings had received a letter of offer from Air Selangor to purchase 100% equity in SPLASH.

“SPLASH Holdings is to revert with acceptance of the offer by 5pm on or before Aug 10 or such other extended or revised closing date(s) as may be decided by Air Selangor,”  Gamuda said.

The offer involved the acquisition of 50 million shares in SPLASH and 350 millilion redeemable unsecured loan stocks issued by SPLASH to SPLASH Holdings.

As for KPS, its 30% interest in SPLASH Holdings is via its unit Viable Chip (M) Sdn Bhd. 

Ahmad Fariz said this corporate development “is certainly not all loss to the group, as we can now be fully focused in executing our business transformation plan to unlock the full potential of our core businesses, thus, creating long-term value and generating sustainable returns for the group”.

“The board of KPS will make the necessary announcement in due course after going through due process internally and with SPLASH Holdings,” he said. 

The acquisition of SPLASH by Air Selangor is undertaken as part of the consolidation and restructuring of the water industry in Selangor, Kuala Lumpur and Putrajaya by the state and federal governments. 

This exercise is done in effort to increase water reserve margins and reduce non-revenue water (NRW), as well as, being one step closer to achieve uninterrupted water supply within Klang Valley and nationwide. 
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