Gamuda maintains RM10.7b offer to takeover water concession firms in Selangor

Business & Markets 2013
Written by Bernama
Thursday, 05 December 2013 16:03
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SHAH ALAM (Dec 5): Gamuda Bhd has maintained its offer of RM10.7 billion
to take over the four water concession companies to run Selangor's water
sector as soon as possible.
Gamuda Group Managing Director, Datuk Lin Yun Ling, said the company
considered the amount after the Selangor State Government, via its investment
arm, Kumpulan Darul Ehsan Bhd, offered RM9.5 billion take over Puncak Niaga
Sdn Bhd, Syarikat Bekalan Air Selangor Sdn Bhd (Syabas), Konsortium Abbas
Sdn Bhd and Syarikat Pengeluar Air Sungai Selangor Sdn Bhd.
Lim said to ensure competitive and affordable water tariffs in Selangor, the state
government should allow the private sector to invest and fund the water sector.
"From our view, the state government does not need to own the assets (in the
companies) to ensure the tariffs are competitive. It can regulate them without
owning the assets.
"Our offer still stands and we are prepared (to take over)," he told a media
briefing after the company's annual general meeting here today.
Lim said the state government faced high fiscal deficit and it should not invest another RM14 billion to run the state's water sector.
He said if the state government intended to regulate the water tariffs, it could get experienced players in the industry to tender for the
water projects in Selangor.
"If the Selangor government still wants to buy, we will see that there will be billions of borrowing. "The state government also wants to
continue with free water, which they also need to fund that. At the end of the day, nothing is free and its debts to the water operators are
growing," he said.
On whether Gamuda would sell its stake in Splash if offered by the state government, Lin said if it was acceptable to the shareholders,
Gamuda would not object.