sold all....... lost confidence for the deal with Ecoworld in Australia, better put money on the company that always make profit and have a reputable management team, despite continuing drop until 10 cents also won't follow.
and page 18-19 talking news on future water prospect, although is for Puncak Niaga and Engtex, could Salcon benefit from the Kelantan project and nationwide piping projects?
There seems to be no end in sight to the water deadlock in Selangor.
Negotiations have been going on for more than eight years between the Selangor government, the federal government and Syarikat Pengeluar Air Selangor Sdn Bhd (Splash).
Several near-solutions have come and gone and deadlines have been extended, but a solution seems nowhere in sight.
The Oct 5 deadline is approaching and the Energy, Green Technology & Water Ministry has insisted that Selangor make an offer to Splash and agree on a price tag. The federal government (through Pengurusan Aset Air Bhd or PAAB), has offered to split the bill 60:40 with Selangor.
But can’t the federal government step up, make an offer, pay the amount, and claim the 40% from Selangor later?
Or if the Oct 5 deadline lapses, should the federal government finally invoke the Water Services Industry Act 2006 (Wasia) option of a forced takeover? The Act allows the federal government to take over a concessionaire’s licence if it is of national interest.
But the federal government seems reluctant to invoke Wasia as the acquisition of Splash by the state government has not been completed. Splash is currently valued at some RM2.8-3.2 bil, although the actual figure is debatable.
Splash’s shareholders are Gamuda Bhd (40%), Sweet Water SPV Sdn Bhd (30%) which is the private vehicle of Tan Sri Wan Azmi Wan Hamzah, and Selangor’s Kumpulan Perangsang Selangor Bhd’s Viable Chip Sdn Bhd (30%).
The state’s Menteri Besar Inc has a golden share in Splash, which makes money from the water concession.
The federal government cannot afford a total breakdown in negotiations. PAAB, which is tasked with managing the country’s water assets, has a RM6.1 bil debt (as of end-FY15) taken out to fund the purchase, and it will have to depend on the finance ministry to fulfil its repayment obligations if the deal does not happen. PAAB’s ability to continue as a going concern will, to an extent, depend on whether it gets the stake in Splash.
While all this is going on, Selangor residents are the ones who suffer from water shortage due to no fault of theirs. Both the federal and state governments should stop holding the 1.6 million Selangor residents hostage and resolve the deadlock as soon as possible.
Despite the negative results for the first half of the year, the Group expects to recover its position with the completion of the Selayang res280 property project and write back of the expenses relating to the Australia Yarra One project upon completion of the sale. Both are expected to be completed and finalized during the second half of this year.
The Group also expects some good news from its water division through the replenishment of its order books in non-revenue water whilst its e-commerce business (online to offline business) will be kept busy towards the China Golden Week during October 1st week with the expected increase of China tourist to Malaysia.
salcon can be a good buy now at current almost historical price low. management has been giving out dividend as well as cutting their debts. currently is a net cash company. don't mind holding Abit in my portfolio.
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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....
Max Kong
2 posts
Posted by Max Kong > 2017-09-07 21:21 | Report Abuse
sold all....... lost confidence for the deal with Ecoworld in Australia, better put money on the company that always make profit and have a reputable management team, despite continuing drop until 10 cents also won't follow.