- Puncak Niaga Holdings Bhd said it has neither concluded nor entered into any definitive agreements regarding the takeover offer of its water assets by the Selangor government.

- The company told Bursa Malaysia this yesterday following reports that its wholly-owned subsidiary Puncak Niaga Sdn Bhd (PNSB) and 70%-owned SPLASH had accepted the offers.

- The group said it would make the requisite announcements to the exchange once the discussions are completed and a formal offer is received.

- The group will then table the offer to shareholders in an extraordinary general meeting.

- Recall that last Friday, the Federal and state governments issued a joint-statement that PNSB and SPLASH have accepted the takeover offers as part of the RM9.65bil water restructuring exercise in the state.

- Our channel checks suggest that Puncak Niaga is still in discussions with the governments in regards to the offers.

- Meanwhile, Selangor Menteri Besar Tan Sri Khalid Ibrahim said that the state government expects to take full control of all water assets within six months.

- He noted that the state had submitted an action plan to the Federal government to ensure the process of restructuring exercise takes place immediately. The action plans include the issue of offer letters by Kumpulan Darul Ehsan Bhd (KDEB) to the shareholders of the water concessionaires.

- As for SPLASH (who had not accepted the offer), Khalid said the state would not compromise on SPLASH’s terms for a higher offer. He added that the Federal government may need to invoke Section 114 or Section 191 to acquire SPLASH if necessary.

- Puncak Niaga is expected to release its 1QFY14F results on May 29. Maintain HOLD as we await a formal conclusion of the deal. 

Source: AmeSecurities