Update Selangor to seek Federal Govt guidance water assets takeover, says MB

Business & Markets 2013
Written by Jeffrey Tan of theedgemalaysia.com
Monday, 09 December 2013 14:00
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KUALA LUMPUR (Dec 9): Selangor Menteri Besar Tan Sri Abdul Khalid bin
Ibrahim said today the state government is maintaining its stand to take over
the four water concession companies, but it will also seek guidance from the
Federal Government.
Speaking at a press conference, Khalid said he “is optimistic in hammering out
a water assets deal” by year end with Puncak Niaga Sdn Bhd, Syarikat
Bekalan Air Selangor Sdn Bhd (Syabas), Konsortium Abbas Sdn Bhd and
Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (Splash).
Currently, the state government is “in negotiations with” Puncak Niaga Holdings
Bhd to resolve the price issue, although Puncak Niaga has agreed in principle
to the revised offer with several conditions, he stated.
“We are confident of resolving this issue as long as both sides (Puncak Niaga
and the Selangor government) accept the re-arrangement of the deal,” said Khalid.
He also said the state is optimistic in buying over Gamuda Bhd’s stake in Splash.
When asked if he will raise the offer, Khalid remarked: “We will seek the guidance of the Federal Government on this issue.”
Last week, Gamuda rejected Kumpulan Darul Ehsan Bhd (KDEB)’s offer on the grounds that it excluded certain key components that
effectively ascribe a lower value to the assets.
Puncak Niaga also said details of KDEB’s offer showed that the actual proceeds payable to all water concession holders were far below
the RM9.65 billion as announced by the Selangor government.