PETALING JAYA: Gamuda Bhd has received a letter of offer yesterday from Pengurusan Air Selangor Sdn Bhd (Air Selangor) setting out the termination of the existing operations and maintenance agreement of the Sungai Selangor Water Treatment Plant Phase 3 (SSP3 OMA) between Gamuda Water and Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (Splash).
The offer also set out the settlement of Gamuda’s 80% owned unit, Gamuda Water Sdn Bhd’s outstanding receivables from Splash via a termination and settlement agreement to be entered into between Air Selangor, Splash and Gamuda Water.
There is also the execution of a new SSP3 OMA between Air Selangor and Gamuda Water.
Recall that earlier this month, the Selangor state government, via Air Selangor, has offered to buy out Splash, in which Gamuda is a shareholder, for RM2.55bil. Gamuda owns 40% of Splash.
“This offer is to facilitate the restructuring of the water services industry in Selangor, the Federal Territories of Kuala Lumpur and Putrajaya,” said Gamuda in a filing with Bursa Malaysia.
Gamuda Water is required to revert with acceptance of the offer no later than 5pm on Aug 27 or on a later date that may be determined by Air Selangor. The salient terms of the offer include:
> Subject to completion of the Splash SPA, Splash will pay to Gamuda Water, as full and final settlement of all amounts owing by Splash to Gamuda Water under the SSP3 OMA, an amount equal to 90% of the outstanding Fee at a date to be mutually agreed.
> An upfront payment of 10% of the settlement sum is to be made within 14 days from the operational date. The balance 90% of the settlement sum to be made in 9 equal annual instalments commencing on the first anniversary of the first payment date and on each anniversary following that.
> The interest shall be payable annually in arrears on the remaining settlement sum at a rate of 5.25%.
> The new SSP3 OMA shall commence on the operational date until Dec 31, 2029. The fees of the bulk water supply rate shall range between 44sen/m3 to 53 sen/m3.
The terms will be conditional upon the completion of the share purchase agreement in relation to Splash between Air Selangor and Syarikat Pengeluar Air Selangor Holdings Bhd, and the nescessary regulatory approvals.
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