Not really. Just imagine when the day come and license expire, what will the state government do ? Kick them out from the pumping station ? Then where to get water to wash underwear ?
OTHERS KUMPULAN PERANGSANG SELANGOR BERHAD (“PERANGSANG SELANGOR” OR "COMPANY") ADVANCE NOTIFICATION OF NON RENEWAL OF RAW WATER ABSTRACTION LICENSE ISSUED BY LEMBAGA URUS AIR SELANGOR ("LUAS")
bcos it's useless without the water distribution (syabas). let alone gamuda & the "individual" controlled 70% splash. kps stake is no use unless puncak/gamuda go ahead. kps by accepting now, might miss the opportunity of any increment.
Angelina2, u don't understand the issue. Iafx is absolutely correct in his analysis, there is no deal if syabas doesn't accept ghe offer! Be more humble
i dont side iafx or longterminvest but angelina2 u miss d point. As iafx said, syabas is integral to the water migration program.who said? go n read amresearch report many months ago, may be before u follow this counter.
the longer the deal drag, the more complicated it is.. The water deals involved too make areas and companies. Seems tougher and tougher to get it done.. Insider seems know something and q to sell in huge quantity. Be careful..
kps is very heavy debted, $1b short/long term interesting bearing borrowings, 3x vs its yearly revenue. therefore while there will be sp.div, but it won't be surprising high. there is no more viable biz left after this deal for kps until further notice.
KUALA LUMPUR: The Selangor Government will only need to pay RM7.65bil following the Federal Government’s decision to invoke the Water Services Industry Act 2006 (Wasia) Section 114.
Under the act, it would enable the Selangor Government to take over the water concessionaires in the state.
In a press conference on Wednesday, the Selangor Government said Konsortium Abbas Sdn Bhd will get the higher value for its water assets and equity following its decision to accept the offer earlier.
However, equity portion is not included in the act.
This came after Puncak Niaga Holdings Bhd and Gamuda Bhd rejected the Selangor Government’s latest offer to acquire their water assets. Kumpulan Perangsang Selangor Bhd, however, has accepted the state’s offer as expected.
SHAH ALAM: The three water concessionaires in Selangor that had rejected the RM9.65bil offer by the state government to buy over the companies will now be forced to accept an offer that is about RM2bil lesser.
This is following the Federal Government's decision to invoke Section 114 of the Water Services Industry Act 2006, which allows the state government to buy over assets of the concessionaires for RM7.76bil.
Disclosing this, Selangor Mentri Besar Tan Sri Khalid Ibrahim said that Konsortium Abbas Sdn Bhd (Abbas), which had accepted the RM9.65bil offer on Tuesday would, however, be paid that amount.
"This is because out of the four, only Abbas accepted the offer while the rest will have to accept what is being offered now," he told reporters after chairing the weekly executive council meeting on Wednesday.
Asked if the management of the concessionaires would be changed, Khalid said it was not a need to do so, adding that only the shareholders were to be dropped.
He also said that by invoking Section 114, it was impossible for the concessionaires to seek international arbitration now.
"The state (government) had offered them more but they refused, therefore, now they will have to make do with what's offered to them," he said, adding that the water restructuring exercise would take not longer than three months.
Khalid said the concessionaires, once bought over, would be operated by state subsidiary, Kumpulan Darul Ehsan Berhad.
On Tuesday, the Energy, Green Technology and Water ministry had said that it would exercise its powers under the Act to allow the Selangor government to takeover the three concessionaires that had rejected the initial offer.
Both governments had signed a memorandum of understanding, which agrees that the Selangor government buy over Syarikat Bekalan Air Selangor (Syabas), Puncak Niaga Sdn Bhd (PNSB), Syarikat Pengeluar Air Selangor Holdings Bhd (Splash) and Abbas.
While Splash had rejected the offer, Syabas and PNSB had said that they were willing to consider the offer with several conditions.
On the multi-billion ringgit Langat 2 water treatment plant, Khalid said the development order had been approved and that it was expected to be completed in less than three years.
He also said that the memorandum of understanding between both governments on the water matter would be declassified after the state legislative assembly next month.
"The documents will be made available but it cannot be reproduced in any form," Khalid said.
While Rafizi felt that it is a step in the right direction in terms of consolidation, he said PKR will have to make sure that the federal government will not use the opportunity to overcompensate the concessionaires.
Rafizi described the invoking of the law as a "double-edge sword" as the state would have no say in setting the compensation amount.
angelina2, have you ever wondered why the share price has not increased since the deal was announced? I'm sure there are a lot of experts out there who knows the calculation and push the price upto a fair value, but this did not happen.
I observed that someone has been buying alot at around 1.87 today.
Sold mine at a small profit a couple of weeks back because I got in at a high price in Jan and took a ride down to 1.56. Don't think I want another ride. Am surprised that it's not going up further though. Perhaps it's a complex deal?
angelina is provoking iafx to explain d deal cos he obviously dont understand. why u talk about30% in splash held by kps if khalid said he is no more payingfor the shares but only water assets? dont wag yr tonge before u got it right
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Icon8888
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Posted by Icon8888 > 2014-03-06 20:54 | Report Abuse
Not really. Just imagine when the day come and license expire, what will the state government do ? Kick them out from the pumping station ? Then where to get water to wash underwear ?