Splash deal is complicated due to khalid have offer range from 1x book value to 0.1x book value, whatever Azmin offer price will be shoot and criticize. So, i think the best is for state gov to privatize KPS and joint control splash
the immediate upside potential is capped at the 200 day simple moving average of rm1.43 of which a successful breakthrough would signal a bullish turnaround, en route to test the upper hurdle of rm1.60 and probably the rm1.80 mark later. On the downside, a slip below the recent lows of rm1.14 will drag the shares down to rm1.06 on extended correction process.
Wiht Selangor new set up investment arm DEIG, to consolidate all state own investment under single entity, KPS should fit well for DEIG to take over to fully control.
But, it all these potential catalyst remain uncertain at these moment, splash deal or privatized, therefore, i opt to Puncak for its confrim deal first, will swap back to KPS later for these potential catalyst
the immediate upside potential is capped at the 200 day simple moving average of rm1.43 of which a successful breakthrough would signal a bullish turnaround, en route to test the upper hurdle of rm1.60 and probably the rm1.80 mark later. On the downside, a slip below the recent lows of rm1.14 will drag the shares down to rm1.06 on extended correction process.
DEIG faces 3 challenges which Azmin must address, says DAP
.....He said it was shocking that 20 out of the 28 companies reported after-tax losses in the financial year 2014.
He said Kumpulan Darul Ehsan Berhad (KDEB), the main holding company under MBI, reported after-tax loss of RM144.4 million in FY2014, while Kumpulan Hartanah Selangor Berhad (KHSB) experienced a massive RM235 million loss in FY2014 on the back of RM31.5 million in revenue.
He added that five out of the seven subsidiaries of Permodalan Negeri Selangor Berhad (PNSB) were dormant companies which did not register a single sen of revenue in FY2014.
Ong said many of the troubled companies and unconsolidated assets were left from the days of the previous Barisan Nasional state government and not cleaned up during the tenure of the former menteri besar, Tan Sri Abdul Khalid Ibrahim.
Kumpulan Perangsang Selangor may rebound further after recovering above the MYR1.29 level. Traders may buy as a bullish bias could be present above this level, with a target price of MYR1.50. The stock may drift sideways if it cannot sustain above the MYR1.29 mark. In this case, further support is anticipated at MYR1.15, where traders can exit upon a breach. http://klse.i3investor.com/servlets/ptres/32354.jsp
KUALA SELANGOR: The long-drawn saga over the water restructuring deal between the Selangor and Federal governments has concluded after the final four agreements were signed between the two parties Tuesday evening.
The state's Pengurusan Aset Air Selangor (Air Selangor) and the Federal Government's Pengurusan Aset Air Berhad (PAAB) signed a set of agreements in accordance with provisions stipulated in the Master Agreement.
The four agreements, namely the Facilities Agreement, Lease Agreement, Settlement Agreement and Rights of Use Agreement were signed by Air Selangor chief executive officer Suhaimi Kamaral Zaman and PAAB chief executive officer Datuk Ahmad Faizal Abdul Rahman.
After the conclusion of the signing ceremony, Energy, Green Technology and Water Minister Datuk Seri Dr Maximus Ongkili told a press conference that the signing was a major milestone in the restructuring of the Selangor, Kuala Lumpur and Putrajaya water industry.
Kps deal have not even secure shareholder approval yet, how could it even can proposed special dividend!? The main cash is via it most precious assest, the 30% stake in splash. If splash deal cannot reach final price, then only state will likely privatize it and have DIRECT and FULL control on kps
Offer me RM2.50 Azmin can have all my shares. But the Real problem is KDEB bcoz they can accept lower offer and control the Voting process ( kdeb own 60% of kps)
KUALA UMPUR: Both the state and federal governments have kept to the 60-day deadline to sign the four supplementary agreements related to Selangor’s water asset consolidation exercise.
Four agreements were signed yesterday between state-owned Pengurusan Air Selangor Sdn Bhd (Air Selangor) and Pengurusan Asset Air Bhd (PAAB), which is controlled by the federal government. The agreements were the Facilities Agreement, Lease Agreement, Rights of Use Agreement and Settlement Agreement.
However, this certainly does not mark the completion of Selangor’s long-delayed consolidation exercise, simply because Pengeluar Air Sungai Selangor Sdn Bhd (Splash), the state’s largest water treatment plant, has not agreed to sell its water assets to the state government as the former demands a higher price.
According to Energy, Green Technology and Water Minister Datuk Seri Maximus Ongkili, the ball remains in the state’s court but the federal government may lend a helping hand to resolve the impasse if Selangor needs it.
“Now it is for the state to make the offer to them [Splash] and [work out] the costing and the federal [government] can then consider how much and how we can help,” said Ongkili, noting that the pricing for Splash was up to the state to decide.
“There are 12 months to conclude the restructuring of Splash, and there is about RM300 million left [from the RM9.65 billion allocated for the acquisition of the four water concessionaires by Selangor
“If the amount is more ... then the state government will do the proposal to the federal government if they need our help,” Ongkili said
Gamuda Bhd owns a 40% stake in Splash, while Tan Sri Wan Azmi Wan Hamzah and the Selangor state holds 30% each. Gamuda group managing director Datuk Lin Yun Ling once said Splash should be valued at least at its book value of RM2.8 billion compared to the state’s offer of RM1.8 billion.
The four concessionaires are Syarikat Bekalan Air Selangor Sdn Bhd (Syabas), which distributes treated water in the Klang Valley, Puncak Niaga Sdn Bhd (PNSB), Splash and Konsortium Abass Sdn Bhd. Both Syabas and PNSB are controlled by Puncak Niaga Holdings Bhd, which has agreed to sell all its water assets.
Selangor Menteri Besar Mohamed Azmin Ali, who was seated beside Ongkili at the signing ceremony, was tight-lipped on the price being ne- gotiated with Splash. “I don’t think we can reveal the amount now, as discussions are still premature. And certainly we will go back to the federal [government] to discuss the details,” he told reporters. But Mohamed Azmin is confident that the state should be able to conclude the negotiation with Splash before July next year.
The menteri besar said the signing of the four agreements had facilitated the completion of the master agreement and the release of up to RM2 billion from PAAB to Air Selangor as financing for the acquisition of the four concessionaires.
next move step 1) kps will be privatise so that kdeb swallow the 30% splash equity step 2) balance 70% (gamuda + wan azmi).... pay 0.8 book value = rm 1.4 billions
all this BN politician already pre-set the game earlier with khalid--- conspiracy theoy They know gamuda won't accept the offer of 0.1x book value. they pay-off puncak first. then , they will ask selangor to share-share (50: 50 ) to pay-off gamuda.
selangor govt dig out rm 1 bil by privatise kps.... then fed pay the balance 1.4 bil
splash deal still need 1 year and Abbas deal still need 4 month.....plenty of time buyback on weakness. But the wild card is still on potential state to privatize KPS to avoid hassle free on water take over price.
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
traderman
7,854 posts
Posted by traderman > 2015-09-08 09:37 | Report Abuse
wah back to 1.3 ... should be something wrong with the deal already ... run while you still can.