The offer by the Selangor State Government to take over the 100% equity in Puncak Niaga (M) Sdn Bhd (PNSB) and 70% equity in Syarikat Bekalan Air Selangor Sdn Bhd (SYABAS) has been accepted in principle by Puncak Niaga Holdings Berhad (Puncak Niaga).
The decision to accept the Selangor Government’s takeover offer for PNSB and SYABAS was conveyed by Puncak Niaga to Kumpulan Darul Ehsan (KDEB) in a letter dated 6 June 2014 and subsequently accepted in principle by KDEB in its reply today.
Both parties have agreed on the indicative terms of the takeover offer for 100% equity of PNSB and 70% equity of SYABAS for a net cash consideration of RM1,555.3 million.
As part of the takeover offer, the Selangor State Government via its wholly-owned subsidiary, Kumpulan Darul Ehsan Berhad (KDEB), will take over PNHB’s entire equity stakes in SYABAS and PNSB including all assets and corresponding liabilities. However, assets, liabilities and businesses under PNSB that are unrelated to water are excluded.
With the exception of the exclusion of non-water concession related assets, liabilities and businesses of PNSB, the indicative terms for the takeover of PNSB and SYABAS are in line with the terms offered by KDEB in its last Letter of Offer to Puncak Niaga dated 26 February 2014.
The Selangor State Government has also sighted an announcement to Bursa Malaysia at the close of trading today by the Board of Directors of Puncak Niaga confirming the agreement in principle to the takeover offer.
Among other things, the takeover offer is conditional upon the approval of Puncak Niaga shareholders at an Extraordinary General Meeting (EGM) to be convened by Puncak Niaga in the near future.
In a special meeting held earlier today, the Board of Puncak Niaga took note of the latest developments and were also informed by Tan Sri Rozali Ismail of his intention to vote in favour of the takeover offer at the EGM, in view of his rights and eligibility as a shareholder with a 41.32% direct and indirect equity interest in Puncak Niaga.
The acceptance of the Selangor State Government’s takeover offer is pursuant to the appeal by Puncak Niaga to the Minister of Energy, Green Technology & Water on 15 May 2014 to defer the invocation of Section 114 of the Water Services Industry Act, 2006.
Menteri Besar Tan Sri Dato Seri Abdul Khalid Ibrahim welcomes the development. “I congratulate the people of Selangor as we are now at the final stage of returning the rights to water assets back to the people. Once the take-over is completed, the state will start looking into the process of offering water shares for the people to subscribe.”
He also thanked the Ministry of Energy, Green Technology and Water for their commitment to assist Selangor in finalising the restructuring of Selangor water industry as envisioned in the Water Services Industry Act 2006.
He said as the water industry consolidation is about to materialise, the state will fulfill its commitment to facilitate the Langat 2 project as stated in the Memorandum of Understanding signed in February 2014. “I will co-chair a meeting on Langat 2 with Minister Datuk Seri Panglima Dr Maximus Ongkili on Thursday .”
ISSUED BY
MEDIA SECRETARIAT
THE OFFICE OF THE MENTERI BESAR OF SELANGOR