Puncak Niaga jawab surat KDEB

 

• Shah Alam: Kami merujuk kepada kenyataan-kenyataan yang dikeluarkan oleh Kerajaan Negeri Selangor mengenai cadangan untuk KDEB membeli 100% ekuiti Puncak Niaga (M) Sdn Bhd (“PNSB”) dan 70% ekuiti Syarikat Bekalan Air Selangor Sdn Bhd (“SYABAS”) yang kini tidak dimiliki oleh KDEB.
• Di dalam kenyataan-kenyataan tersebut, Kerajaan Negeri Selangor memaklumkan kepada pihak awam bahawa tawaran-tawaran berjumlah RM9.65 billion telah dibuat kepada semua pemegang-pemegang konsesi air.
• Puncak Niaga Holdings Berhad (“Puncak”) selaku pemegang saham PNSB dan SYABAS telah membuat satu analisis terperinci ke atas tawaran-tawaran tersebut yang diterima oleh Puncak dalam dua pucuk surat bertarikh 21 November 2013 dan setelah memperolehi pengesahan dari KDEB berhubung dengan beberapa pertanyaan yang dibangkitkan oleh Puncak, pihak kami telah mengenalpasti bahawa prosid sebenar boleh dibayar (“actual proceeds payable”) kepada semua pemegang-pemegang konsesi air adalah jauh di bawah RM9.65 bilion yang diumumkan oleh Kerajaan Negeri Selangor.
• Misalnya, dalam kes Puncak, amaun yang ditawar kepada Puncak untuk pegangan ekuitinya di dalam PNSB dan SYABAS hanya berjumlah RM1.555 bilion dan bukan RM5.594 bilion seperti yang dimaklumkan oleh Kerajaan Negeri Selangor.
• Pihak kami berpandangan bahawa cara di mana tawaran-tawaran tersebut dibentangkan kepada pihak awam oleh Kerajaan Negeri Selangor adalah mengelirukan dan memudaratkan bagi semua pemegang saham Puncak Niaga Holdings Berhad (“Puncak”).
• Pihak kami juga telah mendapati bahawa dalam beberapa Tawaran yang dibuat oleh Kerajaan Negeri Selangor sehingga ini kurang jelas dan memerlukan banyak penjelasan dan pengesahan; sedangkan pemegang-pemegang konsensi diperlukan untuk memberi maklumbalas dalam tempoh masa yang singkat. Perkara ini boleh dielakkan jika perbincangan awal telah diadakan dan maklumbalas yang jelas boleh dibuat oleh pemegang-pemegang konsensi pada kadar segera tanpa keperluan untuk mendapatkan penjelasan dan pengesahan.
• Nilai tawaran dalam Tawaran terkini oleh KDEB adalah hampir sama dengan tawaran yang dibuat pada Februari 2013. Selepas mengambilkira bahawa tawaran Februari 2013 yang lepas telah tidak diterima oleh pemegang-pemegang konsensi pada waktu itu dan hampir setahun sudah berlepas, maka Tawaran terkini oleh KDEB didapati tidak mengambil kira nilai masa wang (“time value of money”) dan juga peningkatan nilai bersih syarikat-syarikat konsensi.
• Setelah mengambil kira keadaan di atas, Ahli Lembaga Pengarah dan Pengurusan Puncak telah mempertimbangkan Tawaran dari KDEB di dalam dua Mesyuarat Ahli Lembaga Pengarah berasingan yang diadakan pada 28 November 2013 dan 3 Disember 2013 dan selepas mengambil kira pandangan Penasihat yang dilantik, Hong Leong Investment Bank Berhad, mengenai kaedah penilaian mereka, Puncak, di dalam waktu muktamad jam 5.00 petang pada 4 Disember 2013 seperti yang ditetapkan didalam surat-surat KDEB kepada Puncak bertarikh 21 November 2013, telah mengeluarkan sepucuk surat kepada KDEB pada 4 Disember 2013 untuk mengakui penerimaan umum secara prinsip (“general acceptance in principle”) Tawaran dari KDEB dengan tertakluk kepada syarat-syarat dan terma-terma berikut untuk dipersetujui oleh KDEB supaya Tawaran tersebut boleh dilaksanakan, iaitu:
• i) Bahawa jumlah sumbangan ekuiti yang akan dibayar kepada Puncak hendaklah berdasarkan pulangan terkompaun (“compounded return”) sebanyak 15% setahun sebagai pampasan kepada Puncak atas kehilangan pendapatan masa depan akibat jualan perniagaan konsesi airnya kepada Kerajaan Negeri Selangor sebelum tarikh tamat setiap konsesi;
• ii) Jumlah hutang yang belum diterima dan belum dibayar oleh SYABAS kepada PNSB pada tarikh kuat kuasa berkaitan dengan bekalan dan jualan air kepada SYABAS hendaklah dibayar kepada Puncak kerana perkhidmatan telah pun diberi;
• iii) Mana-mana dan semua baki tunai (“residual cash”) di PNSB (termasuk perkara (ii) di atas) dan SYABAS hendaklah dibayar kepada Puncak kerana ini mewakili keuntungan yang berkaitan (“profits attributable”) kepada Puncak;
• iv) Penyingkiran untuk keperluan tanya siasat teliti selepas penerimaan Tawaran (“due diligence post acceptance of the Offers”) untuk membolehkan Tawaran tersebut disiapkan secepat mungkin; dan
• v) Pengenepian keperluan (“waiver of the requirement”) untuk pemerolehan aset air oleh PAAB dilaksanakan serentak dengan pemerolehan ekuiti oleh KDEB. Ini adalah kerana KDEB yang akan memperolehi ekuiti syarikat-syarikat konsesi air, harus membayar pemegang-pemegang konsesi terlebih dahulu atas harga yang dipersetujui oleh KDEB, dan KDEB kemudiannya boleh secara berasingan berbincang untuk mencapai persefahaman dengan PAAB untuk PAAB mengambil alih aset air dan pinjaman.
• Dalam surat penerimaan Tawaran secara prinsip, Puncak telah meminta KDEB untuk memberi maklumbalas kepada Puncak dalam tempoh masa tujuh hari. Pihak Lembaga Puncak amat berharap yang KDEB akan bersetuju menerima secara baik terma-terma dan syarat-syarat Puncak supaya penggabungan Industri Air Selangor seperti yang dibayangkan oleh Kerajaan Persekutuan dan Kerajaan Negeri Selangor yang mana disokong oleh pemain-pemain air seperti Kumpulan Puncak dapat dilaksanakan dalam masa terdekat.
• Sebagai sebuah badan korporat yang tertanggungjawab secara sosial, pihak kami tidak ingin melihat kemelut penggabungan terus berlanjutan sejak tawaran pertama oleh Kerajaan Negeri Selangor pada tahun 2009.
• Isu air ini telah membabit semua pihak termasuk para pengguna dan pemaju perumahan dan ianya boleh memberi kesan kepada pelaburan terus asing dan pembangunan ekonomi negeri. -- Tan Bee Lian (PNHB).

Gamuda wants better offer....

 
• SHAH ALAM, Dec 17 (Bernama) -- Malaysia's third biggest builder, Gamuda Bhd, hopes the government will make a reasonable offer to the sellers of water assets in Selangor.
• Managing Director, Datuk Lin Yun Ling said the new offer should not only take into account the discounted cashflow (DCF) value but the RM1.5 billion invested by Gamuda and the income to be reaped over the remaining 20 years of the concession.
• Speaking after the company's annual general meeting, he said Gamuda was willing to discuss the matter further with the government.
• "As one of the sellers, we are willing to compromise and be flexible when it comes to valuation, but it cannot be unreasonably priced," he added.
• Pengurusan Aset Air Bhd, a federal government-run firm, is expected to announce the new offer this week after the Selangor government aborted its original plan to pay RM9.2 billion for the assets.
• The initial plan was called off after Puncak Niaga Holdings Bhd, Gamuda and Kumpulan Perangsang Selangor Bhd could agree on the price offered by the state government.
• The state government has proposed to acquire Gamuda's 40 per cent owned subsidiary, Syarikat Pengeluar Air Sungai Selangor Sdn Bhd, for an estimated gross price of RM2.975 billion comprising the assumption of RM1.39 billion in liabilities and RM1.58 billion in equity.
• Lin said the offer made by the state government to the concessionaires was not even on par with book value.
• "Our accountants are pressing their heads on how the government came out with that figure (RM9.2 billion). Even if the book value is lower than the figure but in term of DCF value, it will be worth more than the offer," he said.
• The real value of concessions was the recurrent earnings for a definite period in the future, he added.
• He said the issue could not be resolved if the government and the concessionaires had different interpretations of the offer price.
• "There is so much needs to be resolved, especially on the underlying issue," he said. -- BERNAMA 

Puncak extends losses....

 

• PETALING JAYA: Despite sounding like a tough sell, the steep plunge in Puncak Niaga Holdings Bhd’s share price in recent days could be an opportunity for investors to pick up the stock at lower levels, according to analysts at CIMB Research and RHB Research Institute.
• Kenanga Research and AmResearch, however, are not too optimistic about the stock’s near-term prospect, citing concerns that the long-drawn-out water impasse in Selangor would probably have a long way to go before it could be resolved.
• Shares in Puncak Niaga tumbled by as much as 7.3% yesterday after the deadline for the Selangor government’s fifth offer to take over the water assets in the state lapsed on Wednesday without any firm takers.
• The stock extended its losses to a third day in a row, closing down 12 sen, or 3.65%, to RM3.17 – its lowest level in two months.
• Puncak Niaga said yesterday it had agreed in principle to sell its water assets to Selangor, but had given the state investment arm Kumpulan Darul Ehsan Bhd (KDEB) seven days to improve its offer.
• “The positive twist is that Puncak Niaga is now willing to strike a deal with the state,” CIMB Research said.
• “The sector and Puncak Niaga are still worth a trade, as newsflow on the takeover heats up in the short term.”
• Meanwhile, RHB Research said it was disappointed that the water deal had not gone through, but remained hopeful that Selangor’s proposed consolidation of its water assets “would be completed sooner rather than later”.
• The firm has kept its “buy” call on Puncak Niaga, with an unchanged fair value of RM5.22.
• Both Puncak Niaga and Kumpulan Perangsang Selangor Bhd said yesterday they had accepted the takeover offer from KDEB with conditions, while Gamuda Bhd said it was unable to consider the offer, pending clarifications from KDEB.
• In the latest response to the new offer from KDEB, the concessionaires are mainly seeking for payments of surplus book value of assets over liabilities, settlement of receivables and higher valuations for the equity portion.
• “At this juncture, it is safe to say that the entire takeover bid has fallen through, as it requires the acceptance by all parties,” MIDF Research said yesterday.
• “Nonetheless, the hope of revival still remains, should KDEB agree to comply with the offerees’ demands,” it added.
• Kenanga Research, however, has taken a negative stance from the latest development, as it sees another deadlock in the ongoing water saga.
• “Despite there being possible further upside for Puncak Niaga if all of its terms and conditions are fulfilled, uncertainty still remains at the Selangor government’s end,” it said.
• The firm yesterday downgraded its target price for the stock to RM3.24 from RM4.02 previously.
• AmResearch had already downgraded the water sector on Wednesday on anticipation of the water asset takeover not being resolved so soon.
• The research house continued to rate Puncak Niaga as “fully valued” at the current price level, it said yesterday. -- The Star
 

Gamuda ready to takeover Syabas, Puncak Niaga

 



Gamuda Managing Director, Datuk Lin Yun Ling

 
• SHAH ALAM: Gamuda Bhd stands by its 2010 offer to acquire all of Selangor’s water-related assets for RM10.75bil, said group managing director Datuk Lin Yun Ling.
• “The offer still stands,” he told reporters yesterday in response to questions about Gamuda’s rejection of the Selangor government’s proposal to take over Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (Splash).
• Gamuda made a surprise bid in April 2010 via its 40%-owned Splash for the Selangor water concessionaires in an effort to fix what had then become a three-year deadlock to resolve the state’s water woes. The attempt, however, was unacknowledged, according to past reports.
• Gamuda on Wednesday rebuffed the Selangor government’s RM1.83bil buyout of Splash, citing valuation issues and uncertainties about Splash’s future operations.
• State-linked Kumpulan Perangsang Selangor Bhd and Tan Sri Wan Azmi Wan Hamzah each hold a 30% stake in Splash.
• But Gamuda remains open to a sale if the price is right, Lin said after a shareholders’ meeting.
• “It also has to be acceptable to our shareholders. The ball is in their (Selangor’s) court,” he said.
• When asked what he considered the “right price”, Lin replied: “I don’t negotiate through the newspapers.”
• The market cheered Gamuda’s decision to turn down the offer. Its stock rose four sen to RM4.67 on trade of 2.7 million shares.
• However, analysts lamented that the rejection might lead to another stalemate in the water talks, despite hopes they could be concluded by the end of the month.
• Industry observers say Gamuda was largely expected to reject the state government’s latest bid because the net proceeds excluded an earlier top-up from the surplus value of assets over liabilities.
• The current offer translated into a value of just RM251mil for Splash, which was 90% less than the initial price tag of RM2.5bil, analysts said.
• Even so, Lin contended that management of the water assets was best left to the private sector.
• “We need to place the water industry on a sustainable path as soon as possible. This impasse is now into its sixth year. Even if you buy the assets, the Government would have to take up billions in debt that must be repaid eventually.
• “Then, it has to raise funds to finance facilities like Langat 2. Also, investments to reduce non-revenue water from 33% to 20% in Selangor could easily cost over RM1bil.
• “With each month, the receivables owed to water treatment operators gets bigger and bigger,” he said, adding that the concessionaires were now owed a combined RM4.5bil, with Splash’s portion at some RM2bil.
• “We have to look at a tariff and revenue regime which is sustainable in the long run. The Government is already in deficit. Why take on another RM14bil in debts to pay for the receivables?
• “Is ownership of the assets the best way to regulate tariffs? If the Government wants to ensure that tariffs are competitive, then it should call for tenders,” Lin explained.
• On talk that Gamuda was planning to spin off Kesas Holdings Bhd and other tolled expressways under a business trust, Lin said: “There are multiple options to monetise our assets.”
• Gamuda had made an RM875mil bid on Nov 4 to buy out the three other shareholders in Kesas. The offer, which expires on Dec 18, valued the highway operator at RM1.25bil.
• Gamuda owns a 30% stake in Kesas. It also has interests in the Damansara-Puchong and Sprint highways.
• Meanwhile, line 2 of the Klang Valley MRT was pending cabinet approval, Lin said.
• “I understand the Government intends to go ahead with the project,” he said without specifying a deadline for the approval.-- The Star

Selangor water saga continues ...

government can regulate the tariff without owning the assets

• SELANGOR'S water saga is expected to continue as the takeover price offered by the state government is still below the expectations of the concession holders.
• Gamuda Bhd, which owns 40 per cent of Syarikat Pengeluaran Air Sungai Selangor Sdn Bhd (Splash) - one of the four concession holders in the state, said the best way to ensure competitiveness, transparency and affordable tariff in the water industry is to leave it to the private companies.
• "Are you sure that the only way to regulate water tariff is by owning the assets? I am sure the government can regulate the tariff without owning the assets," said Gamuda managing director Datuk Lin Yun Ling after the company's annual general meeting, here, yesterday.
• He said the government can call for tenders to ensure an affordable and competitive tariff and award the bid to players who offer the highest value and the lowest tariff.
• Lin added that even if the Selangor government succeeded in taking over the four water concessionaires, it would still have to take up borrowings to finance the new Langat 2 plant and reduce the non-revenue water (NRW).
• The current NRW stands at 33 per cent and the government will need over RM1 billion to reduce it to 20 per cent, he said.
• The Selangor government, via investment arm Kumpulan Darul Ehsan Bhd (KDEB), has offered RM9.65 billion for four water concessionaires in the state.
• The concessionaires are Splash, Puncak Niaga (M) Sdn Bhd, Syarikat Bekalan Air Selangor and Konsortium Abass Sdn Bhd.
• The takeover plan has hit roadblocks again as Gamuda on Wednesday rejected the offer price while Puncak Niaga Holdings Bhd accepted it with conditions.
• Gamuda had said it was unable to consider the offer for a 100 per cent equity in Splash at an estimated value of RM1.8 billion.
• "The ball is in their (state government) court. If they want to buy over and own it ... and the price is right for our shareholders, we won't stand in the way," he said.
• He also said three years ago, Gamuda had offered to acquire the water concessionaires for RM10.7 billion and the offer still stands.
• Meanwhile, analysts agreed that the water saga will continue as the takeover offer has not been accepted mutually by all parties.
• MIDF Research Sdn Bhd said the offer price is far below the estimated proceeds of more than RM2.2 billion that Gamuda should receive after taking into account the surplus book value of assets over liabilities as well as discounted return on the remaining tenure of Splash's concession.
• "We estimate Splash's net book value at about RM2.9 billion and RM3.3 billion in financial year 2013 and 2014, respectively. The discounted equity cash flow of the remaining tenure could fetch a total amount of RM321 million, which implies a 15.22 per cent yield return.
• "Hence, the recent offer by KDEB was inadequate to compensate for the loss of future earnings," MIDF Research said in its report. It maintained a "buy" call on Gamuda with an unchanged target price of RM5.24.
• Public Investment Bank Bhd, meanwhile, said Gamuda should wait for the right price before disposing of its water assets.