Selangor is not budging its offer to Puncak

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  PETALING JAYA (Nov 22, 2013): The Selangor state government is not budging on its offer of RM5.6 billion for Puncak Niaga Holdings Bhd's 100% interests in Puncak Niaga (M) Sdn Bhd (PNSB) and a 70% stake in Syarikat Bekalan Air Selangor Sdn Bhd (Syabas), despite it being rejected the last time.
• In February 2013, the Selangor government, via its investment arm Kumpulan Darul Ehsan Bhd (KDEB), had tabled the same offer to acquire Puncak Niaga's two water assets. The group had then rejected the offer made, saying they were incomplete and inconclusive.
• In a filing with Bursa Malaysia yesterday, Puncak Niaga said it has received two hand-delivered letters from KDEB, its fifth offering, to acquire Puncak Niaga's 100% interest in PNSB for RM2.477 billion and its 70% stake in Syabas for RM3.117 billion, similar to that tabled by KDEB previously.
• The offer includes the same proposed equity contribution plus a 12% return on equity per year for the two water assets.
• Separately, Kumpulan Perangsang Selangor Bhd told Bursa Malaysia that it has received a letter from KDEB to buy the former's 90.83% stake in Titisan Modal (M) Sdn Bhd for RM990.2 million, slightly lower than the previous offer of RM992.2 million made in February, as well as its 30% stake in Syarikat Pengeluar Air Selangor Holdings Bhd (Splash) for RM1.835 billion.
• Both Puncak Niaga and Perangsang Selangor said the closing date for acceptance of KDEB's offer is by 5pm on or before Dec 4, 2013 or such other extended or revised closing date(s) as may be decided by KDEB.
• "The board and management of Perangsang Selangor will review the offer from KDEB and will update the exchange on further developments on this matter in due course," said Perangsang Selangor.
• The proposed acquisitions are part of the consolidation of Selangor's water industry, in which both the Selangor state and federal governments had set Dec 31, 2013 as the target date to come out with an amicable solution to resolve the existing deadlock. -- The Sun