Monday, September 12, 2011

TheStar:Chin unaware of 1MDB’s plan to privatise IWK

PETALING JAYA: The Energy, Green Technology and Water Ministry is unaware of 1Malaysia Development Bhd's (1MDB) possible plan to privatise Indah Water Konsortium (IWK).

“I've not heard anything about that. And IWK comes directly under my ministry,” Minister Datuk Seri Peter Chin said in Kuala Lumpur yesterday.

1MDB, the strategic development unit owned by the Government, said it was “assessing how it could serve national interest and that of its shareholders in a proposed partial privatisation of IWK in which the Government will retain control.”

Meanwhile, Puncak Niaga Holdings Bhd, which is reportedly the company that together with1MDB would propose to take over the national sewerage company, saw its shares reach multi-week highs yesterday.

“We are excited with talk that IWK's potential privatisation is likely to involve Puncak Niaga ... the move is obviously synergistic for the company as it would provide additional income for Puncak Niaga,” said OSK Research in a note.

The research house upgraded the stock yesterday to a “trading buy” from “neutral”.

It closed 14 sen up at RM1.28 after reaching RM1.35 earlier in the day with some three million shares changing hands.

Shares in Puncak Niaga have been on a general downtrend over the past couple of years as the restructuring of the water sector in Selangor, which is part of a larger national initiative, has not materialised after years of negotiations.

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