hng33, my mistake, its actually 280 acres in Kuala Selangor. I had earlier wondered if there's any value left in Puncak asset and put a lower value given its distance from KL. With this news, I suppose Kuala Selangor is not far by Selangor standard.

The land is not cheap in Puncak annual report either, around 500+k as well. Its value is not much if it can be developed into property. With Eco World's involvement, guess Puncak can gradually develop its 280 acres and turn them into cash.

Its definitely better than the 0 value based on so many banks' anal-ysts!

Will Puncak benefit from it? If I were not wrong, Puncak has 250 acres of land there too, that's RM 125 million worth of land.

http://www.theedgemarkets.com/my/article/eco-world-buys-26-parcels-land-rm15b-township-kuala-selangor?type=Corporate

KUALA LUMPUR (Sept 22): Eco World Development Group Bhd ( Valuation: 0.90, Fundamental: 0.85) is acquiring 26 pieces of leasehold land in Kuala Selangor, with a collective land size of 2,198.40 acres (0.81ha) for RM1.181 billion, cash.

In a filing with Bursa Malaysia today, Eco World said its wholly-owned subsidiary Paragon Pinnacle Sdn Bhd has signed five separate conditional sale and purchase agreements (SPAs) with four vendors for the proposed acquisition.

It expects the proposed acquisitions to be completed by the second quarter of 2016.

The indicative market value of the lands, as appraised by Henry Butcher Malaysia Sdn Bhd via its valuation letter on Sept 21, was RM1.1896 billion, hence the purchase price represents a discount of approximately 0.7% of the market value of the lands, said Eco World.

Eco World said it intends to develop the lands into a self-contained township with a potential gross development value of approximately RM15 billion, based on preliminary management estimates.

According to the property developer, the proposed development is expected to be developed over a 15-year period.

“Paragon Pinnacle is currently in the initial stages of development planning and as such, is unable to ascertain the expected costs required for the development to be undertaken on the lands,” it added.

According to Eco World, the developments planned on the land comprise a mixed eco-township named ‘Eco Gardens’ (1,400 acres), an integrated and gated industrial hub ‘Eco Business Park V’ (518 acres), and an affordable homes’ portion to be known as ‘Laman Indah’, which will be built on the remaining 280 acres.

The filing stated the lands are located in the north west of Klang Valley and are approximately 45km from the Kuala Lumpur city centre and 40km from the Petaling Jaya city centre.

The lands are well connected to established suburban centres such as Kota Damansara, Shah Alam and Sungai Buloh via major roads — Jalan Batu Arang, Persiaran Mokhtar Dahari, Jalan Meru Tambahan and Jalan Kuala Selangor, as well as existing highways such as the LATAR Expressway, North-South Expressway and Guthrie Expressway.

“The accessibility to the lands is expected to be enhanced with new proposed expressways including the West Coast Expressway,” the filing added.

Eco World said the proposed acquisitions will provide the group with sizeable tracts of lands in the North-Western growth corridor of the Klang Valley, enabling it to establish a dominant presence in this area with access to a new market catchment to complement its strong township positioning in the South-Western and South-Eastern corridors.

“The lands’ location in an emerging growth corridor with access to the ports and major suburban centres is ideal for the group to replicate the success it has achieved in Iskandar Malaysia,” it added.

On funding, Eco World said the earnest deposit was funded via internal funds whilst the balance is expected to be funded through a combination of internal funds, bank borrowings and/or equity funding.

“Nonetheless, the actual amount required by Eco World to fund the proposed acquisitions can only be determined at a later stage and the source of such funding will be decided after taking into consideration the gearing level of the group,” it added.

In this regard, Eco World also said it is looking at a partnership for growth business model, whereby it will invite like-minded institutional, private equity and/or corporate partners to co-invest and fund Paragon Pinnacle, which will result in a potential reduction of Eco World’s stake in Paragon Pinnacle.

This, in turn, will bring a corresponding reduction in its obligations to fund the proposed acquisitions.

“Under the business model, we intend to retain a minimum of 30% equity stake in Paragon Pinnacle to ensure that the group will continue to enjoy a meaningful share of the development profits,” it added.

guess until 1.5553 bil is announced transferred to complete the deal will we see higher valuation, that would be another 0 - 23 days. Sigh!

hng33, I have an average cost of around 2.90 from 3.00 after recent purchases. Frankly, you are brave to cut loss at this moment, while I can only hope for a rally soon if a deal to be completed within 3 weeks time, best if within the next 10 days.

Big sharks hard to challenge? I will keep on holding ...

roger, I posted the news assuming that not many subscribe to Edge Daily (actually its free, just sign up on Edge website.) And its a piece of information every concerned Puncak shareholders may want to know given US market selldown Friday.

From Edge Daily

http://ded.theedgemarkets.com/Daily/2015/DEDsetia/DEDsetia_20150921a3xpjh.pdf page 6

All parties working hard to meet October deadline

To complete acquisition of Puncak Niaga's water assets, says Air Selangor

wonder if there's any chance news about Selangor handing over 2 billion asset for collateral be out after closing today? Otherwise, how would Selangor state be able to take over Syabas and Puncak beginning Oct 1?!?

ec1705, may I know had I posted something that's inaccurate or my comment on Azmin inappropriate? If yes, kindly indicate which part that's inappropriate and I would appreciate it. And, please, I never expect Azmin to help me making money. I just hope that he is not making FALSE statement in public that's misleading!

cheoky, thanks. Azmin, stop politics, just announce the payment and takeover lah, 我颈项都长了！

When puncak at 2.51? Think Roger is planning to buy at this price

Damned Azmin, I lost so many investment opportunities all thanks to him...

hng33, I have invested based on the news that I can gather and quarter reports as well as bursa announcements that I can read. While I have increased my position in Puncak over the past week, can't help but still have concern over its timely completion due to:

1) Azmin's trust-worthiness is rather low on water restructuring (not sure about others, though never likes his 藕连丝断 with PAS).

2) While the Puncak share price has barely moved by the gradual progress in restructuring, can't help but notice that the gap between Puncak and warrants are shrinking. To me, mother gaps higher than warrant means restrucutring is perceived completed while a warrant gaps higher than mother means more time is needed to complete the deal. Right now, it is as if current price is rather close to the Puncak's fair market price, probably just fall short of 20-50 cents. Its odd to me, especially when the most recent quarter report suggested a minimum of 3.56 cash per share post water deal even when its other assets are ignored, suggesting a minimum of another RM 1 upside potential.

3) Unfriendly anal-ysts reports that are rather consistent from MIDF, CIMB, Affin-Hwang, and AM. Guess only Kenanga has a higher valuation on Puncak right now. It's a bit weird. Unfortunately, I didn't have sufficient knowledge about how the financial analysts industry work, I can barely deduce any useful information out of it.

If Azmin's word has any credibility, water deal with Puncak shall complete at the end of this month or early next month. February statement by energy ministry's LOO is most like in conjunction to licenses taking effect only beginning Feb 22, 2016.


http://en.selangorku.com/25155/cm-acquire-syabas-puncak-niaga-effective-october/

CM: Acquire Syabas, Puncak Niaga effective October


SHAH ALAM, 8 Sept: Pengurusan Air Selangor Sdn Bhd (Air Selangor) will emerge as a new company that provides water services to Selangor, Kuala Lumpur and Putrajaya starting March 2016.

This was announced by the Chief Minister, Mohamed Azmin Ali, after Air Selangor managed to successfully acquire Syarikat Bekalan Air Selangor Sdn Bhd (Syabas) and Puncak Niaga Sdn Bhd (PNSB).

*****
“Starting October 1st, Air Selangor is expected to acquire Syabas and PNSB, however they will both continue to provide water services to consumers.
*****

“All efforts will be focused on improving water treatment services, distribution system, reduction of non-revenue water (NRW) and continuous and adequate water supply to consumers,” he said.

He said this during a press conference after the Air Selangor Services Industry Structuring Signing Ceremony between Aset Air Berhad (PAAB) and Air Selangor at the Shah Alam Convention Centre (SACC).

The state and federal government managed to finalise four agreements involving Facility Agreement, Lease, Solutions and Rights between PAAB and Air Selangor for 45 years under the Leases and Rights of Use Agreement, thereby meeting the 60-day deadline from the signing date of the supplementary agreement on July 10.

Also present was the Minister of Energy, Green Technology and Water (KeTTHA), Datuk Seri Dr Maxiums Ongkili and the Chairman of PAAB, Datuk Seri Tajol Rosli Ghazali.

Maxiums said that Air Selangor has been awarded the Individual License (Facility) and Individual Licence (Service) under the Water Services Industry Act 2006 (WSIA) which allows the entity to own water assets in addition to controlling services in Selangor, Kuala Lumpur and Putrajaya.

*****
“However, the license shall come into effect on February 22, 2016, to enable all agreement features to be carried out.
*****

“Air Selangor and PAAB are given five months to perfect all agreements, including amending the Syabas Concession Agreement and terminating the concession agreement accosiated with PNSB and Abass,” he said.

hng33, I have doing that myself too, in hope this time the deal is real. Meanwhile, edgy while doing it, sigh!

hng33, I still have little faith in Azmin despite the signing, sigh! 一朝被蛇咬，三年怕井绳啊

if I were not wrong, the steps are as follow:

1. state handing over 2 billion asset as collateral to federal for 2 b fund
2. paying puncak for sybas and puncak sdn bhd
3. KPS seeking shareholder approvals to sell asset before getting paid
4. further negotiation between splash and state on selling price before sealing a deal
5. state seeking for fund should splash price is higher than earlier allocation

the biggest uncertainty, to me, is on (1) will azmin hand over 2 b asset for fund, which is why I have been edgy for a while

roger, did I offend you in any way, you sound sarcastic? Or, is anything wrong with my valuation on Puncak that has cost you dearly?

Am I down? Yes. Am I panic? Hope not, I have actually increased my position in Puncak through warrants for the past week. Feeling bad though, cause I have introduced this share to some friends, and actually has a few buying with 2 still holding. Probably that's why I have been feeling bad and down.

hng33, I have been holding Puncak believing that water restructuring is unavoidable and Puncak is deem to benefit from it, have it sold or have a rate increase while keeping the business. Though, the price differential between Puncak and its warrant had me concerned.

given today's sell down, are we going to see 2.48 again?!?

roger, what non sense that I do will cause me to earn nothing from Puncak? are you suggesting Puncak will have more to drop?

Hng33, so bullish this time?

I just sold Puncak at 2.61 to buy warrant at 1.62, adding exposure at the same time.

what a great analysis from an 'anal-yst', since its other businesses don't look good, lets assume everything to have 0 value and give an additional 10% discount to the proceed from its to be sold asset. Had that 'anal-yst' cites uncertainty in completing the restructuring, I would have more faith in his/her comments.

Also, wonder if that 'anal-yst' realize that the 2.90 proceed from water asset is incorrect?!? Its derived from dividing 1555.3 million with the enlarged share cap without adding the 180 millions from relieved debt and proceed from warrant conversion?!?

拉锯战？

cheoky, rozali is definitely no with us, with or without deals, he gets paid monthly to the tune of millions. Even with the deal, rozali is keeping 1.3 over billion and handing out only 500 over millions to us. So, we felt like communist, but definitely not living like communists. Oops, probably you are right, cause this is exactly what's happening in communist countries now...

guess market has no confidence or reservation on the completion of water restructuring. probably that's why the price is so low currently. if so, once a deal is confirmed, price is going to shoot. Question is, who holds the answer or really know the progress except Azmin and Ongkili, probably should add Najib too?

Singor, thanks for the update, sincerely hope news on transferred asset will be published and soon...

cheoky, what's left now is for Selangor state government to provide 2 billion worth of asset as collateral to get loan from federal to fund the takeover from Puncak. Thought that's understood by the market, no?!? Is market has so little faith with Azmin/federal to get the final stage done?

http://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=68488&name=EA_GA_ATTACHMENTS

14 SEPTEMBER 2015
FOR IMMEDIATE RELEASE
PUNCAK NIAGA HOLDINGS BERHAD (“PNHB” OR “COMPANY”)

LATEST STATUS ON :-
(I) PROPOSED DISPOSAL BY PNHB OF THE ENTIRE EQUITY INTEREST AND CUMULATIVE CONVERTIBLE REDEEMABLE PREFERENCE SHARES HELD IN PUNCAK NIAGA (M) SDN BHD TO PENGURUSAN AIR SELANGOR SDN BHD (“PROPOSED PNSB DISPOSAL”)

(II) PROPOSED DISPOSAL BY PNHB OF 70% EQUITY INTEREST HELD IN SYARIKAT BEKALAN AIR SELANGOR SDN BHD AND RM212.0 MILLION NOMINAL VALUE OF REDEEMABLE CONVERTIBLE UNSECURED LOAN STOCKS TO PENGURUSAN AIR SELANGOR SDN BHD (“PROPOSED SYABAS DISPOSAL”)

(COLLECTIVELY REFERRED TO AS “PROPOSED DISPOSALS”)

We refer to the conditional sale and purchase agreement dated 11 November 2014 signed between Puncak Niaga Holdings Berhad and Pengurusan Air Selangor Sdn Bhd (formerly known as Temasek Tiasa Sdn Bhd) (“Air Selangor”) (“SPA”) on the Proposed PNSB Disposal and Proposed SYABAS Disposal for a total cash consideration of RM1,555.3 million.

The above SPA was signed with the full support and consent of the Federal Government whereby it is the intention of the State Government of Selangor to consolidate / restructure the water industry in the State of Selangor and the Federal Territories of Kuala Lumpur and Putrajaya (“Selangor Water Industry”) and for the Selangor Water Industry to be managed by the State Government of Selangor (Consolidation / Restructuring of the Selangor Water Industry”) and for the Federal Government to expedite the construction of Langat 2 and the related trunk distribution system.

Under the terms and conditions of the SPA, all conditions precedent were supposed to have been fulfilled on 12 January 2015 (“Stop Date”) whereby upon completion of the SPA, PNHB will hand over its water concession business in Selangor under PNSB as well as SYABAS to the State Government of Selangor and in return, the State Government of Selangor will pay RM1,555.3 million to PNHB.

This Stop Date has been extended for seven times to enable the pending issues related to the water asset transfer between the State Government of Selangor and the Federal Government to be resolved. The latest Stop Date being the Seventh Extension of Time of the SPA fall due on 14 September 2015.

To date, we understand that Air Selangor is still not able to fulfill the conditions precedent in the SPA and there is a need for a further extension (eighth extension) of the Stop Date before the Proposed Disposals can be completed to facilitate the Consolidation / Restructuring of the Selangor Water Industry to be managed by the State Government of Selangor via its state-owned entity, Air Selangor.

The negotiations on the restructuring of the water services industry has taken a long time since February 2008 before the SPA was finally signed between PNHB and Air Selangor on 11 November 2014. However, the SPA has not been completed and the delay in the completion of the entire Consolidation / Restructuring of the Selangor Water Industry by the Federal Government and the State Government of Selangor has inadvertently resulted in severe repercussions and inconvenienced the consumers in Selangor and the Federal Territories of Kuala Lumpur and Putrajaya of their rights to treated water.

As at to date:-

(1) The treated water reserve margin is below 1% and this decrease to negative during peak hours and the situation is extremely critical.

(2) The authorities have suspended SYABAS Capital Expenditure (“CAPEX”) and to date, only 1,020 km of old AC Pipes have been replaced. However, only a very small portion of pipe replacement programmes are allowed by the authorities based on the level of urgency.

(3) The Non-Revenue Water (“NRW”) cannot be reduced and may keep increasing and is currently sustaining at below 32%. When SYABAS took over from Perbadanan Urus Air Selangor Berhad (“PUAS”) in 2005, the NRW level was 42.78%. SYABAS managed to reduce it to 33% in 2008, just three (3) years after the takeover via an intensive NRW programme. However, since the programme was stalled since 2008 pending the restructuring of the water services industry, the NRW level will keep increasing if no action is taken and this will also directly aggravate the current water shortage problem faced by the consumers.

(4) A total of 961 new development projects as at 31 July 2015 continue to be put on hold due to lack of treated water supply.

hng33, well, have I learnt to time the market better, my profit should also be better and risk lower

hng33, I am no saint lah, sure got frustrated when thought I have research well before investing to know that its not in favor of the market, while yet can't figure out why... And frankly, I am keen to know the who and why the selling in Puncak today, not only it clears my mind, but help in understanding the market better...

hng33, still, can't help but a HUGE wonder as to WHO and WHY the selling...

Wonder who & why is the selling?

Moi, Canada is producing tar sand oil, not shale oil... are you sure you know the difference. The major oil glut in the market is caused by Saudi, Iraq and Iran. At 40-50 range, they are not sufficient to fund their nation's social and infrastructure development and have to dig their own reserve to survive right now. Wonder how long can it last. Frankly, I am not opposing a low oil environment, just think people over pessimistic right now. Until a suitable yet 'cheap' replacement is available, oil is here to stay. Look at the demand, its increasing every year, despite claim that the industry is doom. Don't even know what that means?!?

Moi, post water deal, Puncak will have a cash of over 3.56 or 3.64 per share depending on your valuation method and assuming all sukuk/warrant are converted (should be much higher than 3.64 if portion of sukuk/warrants not converted.) Puncak burnt less than 40 million cash, that's less than 0.08 per share a year, over the past 4 quarters! And that actually after taking in the losses in the water treatment plant in China that it has just sold and interest paid to sukuk holders. In addition, BP had earlier forecast that crude oil will gradually recover to around 70 by 2020 given replacement cost of crude oil. Moreover, Puncak can always venture into affordable property development in Kuala Selangor given its land bank there is about 250 acres (more than enough for a 10 years projects) Thus, to assume (1) the asset of almost 1 per share has 0 value is crazy (2) a heavy discount of over 35% to its future cash in hand is absurd!

Of course, I can't rule out the possibility that Azmin or federal will not honor water in the last minute and had the water restructuring in limbo for some more donkey years. That's politics that no one can really predict except Azmin and federal.

finally, Puncak rises 1 cent. Hope there are more to come

truth is, until now, I have no idea why had the analysts valuing Puncak at such a low level (barely 70% of its cash in hand should deal completed), but can only come with two possible scenario, one being doubting Puncak water deal completed before Oct 01 and the other being doubting Rozali can and will manage remaining cash of over 1.2 billion prudently.

But, assuming deal is sealed, with a cash after asset disposal of over 1.9 billion with an additional 500 over million of land and investment, I really don't see why I should particularly concern about its future potential. This is particularly so after oil & gas and plantation sectors are at their low point currently. The freed up 1.2 over billion cash should allow Puncak to seek good deal for long term prospect. Of course, I can only hope Rozali will look after small shareholders' interests beside his.

wonder if rozali would consider privatizing Puncak at 3.70 cash per share post deal? That should be good for him and us, the small fishes.

upsidedown, doesn't really make sense with such a low volume. Say they can absorb 25%, that's less than 250,000 shares. Doing it for 3 days, that's not even 1 million shares.

No eye see, news n price are set as if no deal in sight.

frankly, I have decided to wait til the end of this month for puncak announcement before deciding anything. plus, really nothing much can be done already

奶奶的熊，那个狗蛋在抛售，再次晕倒。。。

Die hard hard if epf selling, lack big player in puncak

hng33, I see, thanks

Guess Kenanga is the only remaining big research house to have high hope on Puncak?

http://www.4-traders.com/PUNCAK-NIAGA-HOLDINGS-BER-6491195/news/Puncak-Niaga-Berhad--Shares-in-water-related-companies-spurt-21003722/

KUALA LUMPUR: SHARES of water-related companies involved in the Selangor water deal spurted yesterday on news that the companies are finally coming to a conclusion with the signing of an agreement between the related parties today.

The parties are Syarikat Bekalan Air Selangor Sdn Bhd (Syabas), Puncak Niaga Sdn Bhd (PNSB), Konsortium Abbas Sdn Bhd and Syarikat Pengeluar Air Selangor Sdn Bhd (Splash).

Puncak Niaga Holdings Bhd's shares on Bursa Malaysia closed 18 sen higher to settle at RM2.70 with 1.9 million shares traded.

Kumpulan Perangsang Selangor Bhd, meanwhile, gained 14 sen, or 11.86 per cent, to RM1.32 a share with a total of 2.2 million shares traded.

However, Gamuda Bhd's shares slipped 15 sen to close at RM4.36 after hitting intra-high of RM4.50.

Kenanga Investment Bank Bhd said as the Selangor water assets contribute to almost all of Puncak Niaga's earnings, there will be a huge earnings vacuum for the group.

"The group has yet to identify any future investment to fill the earnings gap," it said in its note.

The research firm has set a target price of RM3.99 for Puncak Niaga with "outperform" call on the stock.

Puncak Niaga has a 100 per cent and 70 per cent ownership of PNSB and Syabas, respectively.

Kumpulan Perangsang owns 100 per cent stake in Konsortium Abbas and 30 per cent interest in Splash, while Gamuda has a 40 per cent stake in Splash.

According to the Energy, Green Technology and Water Minister Datuk Seri Dr Maximus Ongkili, the deal would be inked in Shah Alam.

It will see four agreements - the facilities agreement, lease agreement, rights of use agreement and settlement agreement, under the state's water services industry restructuring sealed between Pengurusan Aset Air Bhd and Pengurusan Air Selangor Sdn Bhd.

The agreements are condition precedents to effect the master agreement for the restructuring, Ongkili said.

He said with the sealing of the agreements and handing over of the licences, the condition precedents would be fulfilled and that means the master agreement would take effect from tomorrow.

interestingly, CIMB who used to have a favorable rating on Puncak and cut back target price due to political gridlock, remains its target price for Puncak at 2.55 too after Am Research, Affin Hwang, and MIDF all retain their ratings. Why? Why? Why? To allow institutional investors buying? Seeing more issues before taking over Puncak? Seeing Rozali the worst of its kind, I mean majority shareholders, that won't reward shareholders?

worth mentioning is the past downgrades by these research houses have mainly the political gridlocks in completing the water restructuring...

upsidedown, warrants are traded at premium, not discount. Puncak at 2.66 and warrant at 1.72 while conversion cost is 1, so warrant is at 0.06 premium right now. Though, since warrant is traded without including the conversion cost, any price gain in Puncak will cause warrant to rise faster relatively.

Ah, forgot to mention, if I were not wrong, Puncak also has 250 acres of land in Kuala Selangor, wonder if that land is valuable?!? Think its suitable for township development, just not sure if the location is good or not

sudahkena, truth is, if not saddled with this investment, I would have purchased others who have suffered from the currencies depreciation and waited for another year or two for Ringgit to recover slightly and watch their valuation improved. Puncak is right now the equivalent of sweetened 鸡肋. I also don't know what to do with it, haha... Don't think warrant conversion will cause Puncak price to drop, but not sure about sukuk. Really have to know sukuk holders to decide, one on if they will convert and another if they are long term investors. (don't tell me its rozali, hahaha...)