Wednesday, 21 April 2010

Splash to make new offer for water assets

Gamuda Bhd (5398) has said its associate company plans to partner the federal government in a new offer to buy water assets in Selangor for RM10.75 billion.

The old offer was for Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (Splash) to pay that amount on its own. Now, it will stump up RM2.57 billion on top of an RM8.18 billion existing offer by Pengurusan Aset Air Bhd (PAAB).

Its previous bid was criticised by the Minister of Energy, Green Technology and Water as being against the spirit of the law, which promoted an "asset light" concept for water companies.

"PAAB will own and carry all the water assets on their books and lease the assets to Splash to enable the latter to operate as the operation and maintenance operator under a 30-year concession/licence.

"Splash will pay PAAB lease rentals of 6 per cent a year, with an annual escalation of 2.5 per cent, the same rate as charged by PAAB to the operating entities in other states," Gamuda said in a statement to Bursa Malaysia Bhd.

Splash's offer, made on March 24, was for water assets of Splash (RM3.72 billion), Puncak Niaga (M) Sdn Bhd (RM1.93 billion), Syarikat Bekalan Air Selangor Sdn Bhd (RM4.14 billion) and Kumpulan Abass Sdn Bhd (RM946 million).

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