KPS hopes Splash takeover will be resolved by July

By FARA AISYAH / Graphic By TMR

Kumpulan Perangsang Selangor Bhd (KPS) hopes the prolonged takeover of water treatment concessionaire Syarikat Pengeluar Air Selangor Holdings Bhd (Splash) will be successful by July 4 as there is political alignment at the state and federal levels now.

KPS, which holds a 30% stake in Splash via its wholly owned unit Viable Chip (M) Sdn Bhd, is majority-controlled by the Selangor state government.

KPS chairman Raja Datuk Idris Raja Kamarudin said the acquisition in the past has been delayed for many years because there was no political will to resolve the matter.

“We just didn’t have the political will because we were not on the right side of the fence. Today, Selangor is part of the ruling coalition, thus we hope the political will is there to resolve this to the favour of not only KPS, but more importantly to Selangor water consumers, who need improvement in water, service and distribution qualities. We hope July 4, 2018, would be the final deadline and no further expansion after that,” he told reporters after the company’s AGM in Shah Alam, Selangor, yesterday.

Raja Idris said one of the main issues for the delay on a deal was that the offer price of RM250.6 million was considered too low by Splash shareholders.

He added that there has been no new offer tabled by the state, and the last offer of RM250.6 million stands.

The second issue, Raja Idris said, is the funding of the acquisition which needs to be settled by the federal government.

“No matter what was the price you agreed upon, the funding needs to be done by the federal government. It is a very similar process when the state government took over Puncak Niaga Holdings Bhd, Syarikat Bekalan Air Selangor Sdn Bhd and Konsortium Abbas Sdn Bhd,” he added.

KPS plans to enhance its revenue diversity in 2018 with increasing global reach, on the back of recently acquired CPI (Penang) Sdn Bhd and expanded business in Century Bond Bhd.