Puncak Niaga and its 70% owned unit SYABAS are said to be exploring the possibility of taking over SPLASH.
It is understood that initial negotiations have been held between officials from both companies.
It is believed that a meeting has been slated soon between the controlling shareholders of Puncak Niaga and those of SPLASH and possibly Konsortium Abbas Sdn Bhd. Apart from SYABAS, Konsortium Abbas and SPLASH, the other water concessionaire in Selangor is PNSB.
Existing Water Industry Structure In Selangor
Puncak Niaga
Ø 100% PNSB
Ø 70% SYABAS
KDEB
Ø 15% SYABAS
KPS
Ø 15% SYABAS
Ø 55% Abass
Ø 30% SPLASH
Gamuda
Ø 40% SPLASH
The Sweet Water Alliance
Ø 30% SPLASH
Operasi Murni
Ø 45% Abass
Rozali is understood to be eyeing control of SPLASH to take the operation and maintenance contracts for water assets in the state.
With SYABAS under Rozali’c ontrol and possibly the majority of SPLASH under him as well, and possibly shares in Konsortium Abbas, he could wrangle for the lion’s share of the operations and maintenance of water assets in the state.
Although it is unlikely that KDEB will be looking to exit SPLASH, the other two shareholders, Gamuda and The Sweet Water Alliance, could be enticed to exit with an offer from Rozali or his vehicles.
Financial Results …
Puncak Niaga Bhd reported a 66.7% jump in profit before tax to RM7mil for the fourth quarter ended Dec 31, 2008 (Q4’08) compared to RM4.2mil in the same period a year ago, thanks to higher water revenue.
It posted higher revenue of RM422.5mil in the fourth quarter from RM363.4mil a year earlier while full year turnover rose to RM1.5bil against RM1.4bil previously.
Pre-tax profit for FY08, however, fell 50.9% to RM56.7mil from RM115.4mil in the year before due to higher operating and finance costs, as well as depreciation and amortisation expenses.
Interest expense was higher during the year due to the further draw down of Bai Bithaman Ajil Medium Term Notes in 70%-owned subsidiary, Syarikat Bekalan Air Selangor Sdn Bhd (Syabas) to fund its operating cash flow deficit.
The increase in depreciation and amortisation was due to changes in the projected revenue of Syabas following a review at the end of 2007 and 2008.
Scan 05 Nov 2024
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Symbol TypeDateClose PriceVolume13 Day RSI
ANCOM Overbought 11/5/2024 1.07 1590300 74.36
CYPARK Overbought 11/5/2024 0.84 7540100 74.73
HARTA Overbought 11/...
13 hours ago
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