Splash accepts Air Selangor's RM2.55b water assets offer

PETALING JAYA: Gamuda Bhd’s 40%owned associate company Syarikat Pengeluar Air Selangor Holdings Bhd (Splash) has decided to accept the RM2.55 billion offer for its water assets from Pengurusan Air Selangor Sdn Bhd's (Air Selangor).

"Splash Holdings expects to commence negotiations with Air Selangor to finalise the terms and conditions for the sale and purchase of Splash through a share purchase agreement (SPA) to be executed by the parties. Both Air Selangor and Splash Holdings are expected to finalise the terms and conditions of the SPA by Sept 14 and an appropriate announcement will be released in due course upon the execution of the SPA," Gamuda said in a stock exchange filing yesterday.

The offer represents a 26% discount to Splash’s net book value of RM3.5 billion as of December 2017.

Its share price closed 14 sen or 3.6% lower at RM3.71 yesterday with some 4.55 million shares changing hands.

Meanwhile, diversified group Kumpulan Perangsang Selangor Berhad (KPS), which owns a 30% interest in Splash said, the acceptance of the takeover offer does not require approval from KPS shareholders.

Its share price closed down one sen to RM1.83 yesterday, with some 1.48 million shares changing hands.

The acquisition of Splash by Air Selangor is undertaken as part of the consolidation and restructuring of the water industry in Selangor, Kuala Lumpur and Putrajaya by the state and federal governments. This exercise is done in effort to increase water reserve margins and reduce non-revenue water (NRW), towards achieving uninterrupted water supply in Klang Valley and nationwide.

Splash is the last pending water asset under the Selangor water restructuring exercise. Puncak Niaga Sdn Bhd, Syarikat Bekalan Air Selangor Sdn Bhd and Konsortium Abbas Sdn Bhd sold their water assets for RM2.47 billion, RM3.11 billion and RM990 million, respectively.