Air Selangor: 28% discount in deal

  • Nation
  • Saturday, 11 Aug 2018

SHAH ALAM: Pengurusan Air Selangor Sdn Bhd (Air Selangor) has denied allegations that it gave special treatment to Syarikat Pengeluar Air Sungai Selangor (Splash) when it offered the company an acquisition value of RM2.55bil on Aug 3.

Air Selangor chief executive officer Suhaimi Kamaralzaman said on the contrary, the discount used in acquiring Splash was much higher compared to the discount used in the takeover of Puncak Niaga (M) Sdn Bhd (PNSB), owned by Puncak Niaga Holdings Bhd in 2015.

“In the PNSB transaction, Air Selangor had paid a price equivalent to 0.86 times of the clean book value, that is a discount of 14% of the clean book value of the water concession assets of PNSB; Air Selangor did not take over the non-water concession assets owned by PNSB.

“In the Splash transaction, the Air Selangor offer value was equivalent to 0.72 times the clean book value of the company, which was a discount of 28% on its clean book value,” he said in a statement.

Suhaimi said this in response to the claim by former Selangor mentri besar Tan Sri Abdul Khalid Ibrahim, who said the takeover of Splash resulted in the people of Selangor having to pay more than 10 times the price offered by the state government in 2013.

Khalid also expected the situation might force the state government to review or stop the programme of giving free water to all households in Selangor, which had been implemented since 2008.

Suhaimi said the Splash takeover was done based on the principle of “willing buyer, willing seller”, which required the seller and buyer to agree to the terms first before the takeover could be finalised.

“In the current five-year period, Splash shareholders had rejected the proposal to sell at RM250mil in view of the very big discount on its clean book value,” he said.

According to Suhaimi, based on the value confirmed by three independent bodies appointed by the state government and the Federal Government, the clean book value of Splash was between RM2.7bil and RM3.2bil.

On Aug 3, Selangor Mentri Besar Amirudin Shari said the Splash acquisition process, which had long been delayed, was eventually finalised after the concession company had agreed in principle to accept the offer value for the takeover by Air Selangor at RM2.55bil. — Bernama

Utilities , splash , air selangor