ECM Libra Investment Research maintains a 'neutral' call on the Selangor water sector as the water consolidation exercise may be a long journey while the various parties involved strive to create a 'win-win' scenario for all amid a complex situation.

Last Friday, Kumpulan perangsang Selangor Bhd announced that the Selangor State Government's RM9.39 offer per share to acquire all the equities of Konsortium Abbas Sdn Bhd had been accepted on certain conditions.

'Unfortunately, this is the only good news to come out of the latest attempt at consolidating Selangor's fragmented water industry,' said ECM Libra in a research note today.

On the same day, Syarikat Pengeluar Air Selangor Sdn Bhd (Splash) shareholders said the company was unable to accept the offer to acquire 100 per cent equity in Splash valued at RM5.95 per share.

Meanwhile, Puncak Niaga Holdings had on Jan 26 announced that Puncak Niaga (M) Sdn Bhd and Syabas are unable to table any proposal to shareholders until a clear and unambiguous offer was received.

The research house said Splash had put forth that the main stumbling block thus far had been the inability to bridge the gap between the commercial value sought after by the water players and the amount the government was willing to pay.

'It appears there may not be a speedy resolution to the consolidation as the media had quoted Selangor Menteri Besar Tan Sri Abdul Khalid Ibrahim as saying that the state will not raise the present RM9.3 billion offer,' it added. -- Bernama