Gamuda Bhd announced that its 40 percent-owned water concessionaire, Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (SPLASH), was unable to accept the conditional offer from Menteri Besar Selangor (Incorporated) or MBI to acquire all the voting shares in the company.
The conditional offer was made on Jan 6, 2011 at a cash offer price of RM5.95 per offer share and SPLASH said the offer had undervalued the company, Gamuda said in a filing to Bursa Malaysia.
In its reply to MBI, SPLASH had said the offer was also well below the previous offer made by the Selangor state government on July 15, 2009, which SPLASH had then accepted in good faith.
As such, it would like to renew its own offer to the Selangor and federal governments on April 20, 2010 of RM10.75 billion to consolidate the Selangor water industry with SPLASH as the "top-to-toe" operator and consistent with the intentions of the Water Services Industry Act, 2006 (WSIA).
SPLASH viewed that the main stumbling block thus far had been the inability to bridge the gap between what the water operators wanted (commercial value) and what the governments were prepared to pay.
In its reply to MBI, SPLASH also wanted the critical issues that it had outlined to be addressed in order for the restructuring to proceed.
SPLASH said it hoped that it had provided a working model for the Selangor state government and the federal government to move forward with the long-delayed restructuring of the Selangor water industry.
It believed that the existing provisions in the WSIA were adequate to enable such a model.
SPLASH said it was willing to work with any entity that may be proposed by the state government or the federal government to undertake the restructuring, but in the event that neither government had a preference, SPLASH was also willing to proceed immediately with its proposal.-- BERNAMA
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