Splash accepts Air Selangor’s RM2.6b bid

Splash Holdings will seek to finalise terms and conditions by Sept 14, 2018

By MARK RAO / Graphic By TMR

Splash Holdings (Syarikat Pengeluar Air Selangor Holdings Bhd) has accepted the RM2.55 billion takeover offer made by Pengurusan Air Selangor Sdn Bhd (Air Selangor) for Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (Splash).

Splash Holdings is 40%-owned by Gamuda Bhd and 30%-owned by Kumpulan Perangsang Selangor Bhd (KPS), with the remaining stake held by Sweet Water SPV Sdn Bhd, the private vehicle of businessman and Splash chairman Tan Sri Wan Azmi Wan Hamzah.

In separate exchange filings yesterday, Gamuda and KPS noted their associate Splash Holdings has resolved to accept the offer from Air Selangor and will seek to finalise terms and conditions by Sept 14, 2018.

The RM2.55 billion offer tabled by Air Selangor was significantly higher than the RM250.6 million offered by the state-owned water utility company back in 2013, but is still lower than Splash’s current book value of RM3.54 billion.

Splash shareholders have waited for a better offer to bring the 10-year long restructuring process of Selangor’s water industry to an end.

The takeover offer from Air Selangor is for all 50 million ordinary shares in Splash, as well as the entire 350 million redeemable unsecured loan stocks issued to its parent company, Splash Holdings.

Gamuda’s divestment in Splash will see the engineering, property, infrastructure and toll concession businesses receive RM760 million in cash, while KPS will pocket RM570 million.

Under the terms of the offer, upon the signing of a definitive agreement between all parties for the 100% stake in Splash, Air Selangor will make an upfront payment of RM1.9 billion with the remaining RM650 million to be paid in instalments over a nine-year period.