Puncak Niaga Holdings Bhd and Gamuda Bhd have both said the latest
offer by the Selangor state government (SSG) in relation to the state’s
water consolidation exercise to buy their water businesses out as “not
reasonable”.
Gamuda said the net offer to buy its stake in Syarikat Pengeluar Air
Selangor Holding Bhd (Splash) for RM250.6 million will result in a huge
divestment loss of RM920 million to Gamuda compared with the net asset
value (NAV) of Splash amounting to RM2.54 billion as at Dec 31, 2013.
Gamuda has a 40% stake in Splash.
“The offer of RM250.6 million is below 10% of Splash’s NAV. The offer is therefore not reasonable for acceptance by the company.
“The company informed Kumpulan Darul Ehsan Bhd (KDEB) that it is,
however, amenable to accepting an offer by KDEB to acquire the equity of
Splash upon mutually agreed terms on a ‘willing buyer-willing seller’
basis, based on the following conditions which were already included in
KDEB’s earlier offers and accepted by the company,” Gamuda said in a
filing to the exchange yesterday.
Meanwhile, Puncak Niaga, in a filing to Bursa Malaysia yesterday, said it set certain conditions before agreeing to the buyout.
Puncak Niaga said, at a special board of directors’ meeting held
recently, it is demanding from the SSG an additional 15% per annum
compounded return aside from the offer price as compensation for loss of
future income as a result of the sale of its water concession business
to the SSG.
In addition, the conditions also include any residual cash in both of
Puncak Niaga’s subsidiaries — Puncak Niaga (M) Sdn Bhd (PNSB) and
Syarikat Bekalan Air Selangor Sdn Bhd — will be paid to Puncak Niaga as
this represents the profits attributable to
company, Puncak Niaga said.
“Following the decision of the board, the management of the company
has sent a letter to KDEB to inform them of the decision before the 5pm
on March 10, as stipulated in KDEB’s offer letters,” it said. The
Selangor state’s offer is made through its unit, KDEB.
Meanwhile, SSG’s Kumpulan Perangsang Selangor Bhd (KPS), which owns a
30% stake in Splash, said it has accepted the offer made by KDEB.
“As set out in the offer letters, the agreement arising from the
acceptance of the offers is legally binding and remains in full force
and effect until superseded by formal agreements to be entered into with
KDEB relating to the proposed disposals,” it said.
In an earlier filing, Puncak Niaga said its wholly-owned subsidiary,
PNSB, has received a faxed letter from Lembaga Urus Air Selangor (Luas)
in line with the decision of the Selangor state government to
restructure the state’s water operations.
Puncak Niaga said among the decisions made by the state government
are water treatment concession companies in Selangor will be allowed to
conduct raw water abstraction activities until the expiry of the
existing raw water abstraction licence on May 31, and there will be no
renewal of licence unless further directive is issued by the state
government.
Puncak Niaga and KPS had each received a faxed letter from Luas on the state government’s decision.
This content is provided by FMT content provider The Malaysian Reserve
http://www.freemalaysiatoday.com/category/business/2014/03/11/sgor-water-buyout-not-reasonable/
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