Refer to the previous offer by State Government in Feb 2013 for the privatisation of water assets in Selangor, accrding to CIMB research in a report dated Feb 2013, Puncak will get about RM2.77/share for disposal of Puncak Niaga Sdn Bhd and 70% stake in Syabas. But based on my calculation, if I interpret it correctly, it could be RM3.46/share.
Besides 5 sen single tier dividend which will go ex on 11 July 2013, Puncak is also giving out free warrant on the basis of 1 for 10, to be ex on the same date.
SHAH ALAM (July 2, 2013): The federal government has agreed to Selangor acquiring all four water concessionaires in the state.
Mentri Besar Tan Sri Abdul Khalid Ibrahim said he has received a letter from Prime Minister Datuk Seri Najib Abdul Razak agreeing to the deal.
"Selangor is all set to bring the supply of water under its control before the end of the year," Abdul Khalid said.
While he did not disclose figures or terms of the agreement, the Pakatan government, since came into power in 2008, has been clamouring for water to come under the control of the state.
Abdul Khalid told Dr Abd Rani Osman (Meru-PAS) in the state assembly today: "The state and federal governments are working together in drafting the agreement in accordance with the Water Concessionaries Industry Act 2006.
"Under the Act, the federal government has the executive power over any water deal across the peninsular and federal territories."
The Selangor government cited incompetence on the part of the concessionaires as one of the reasons to acquire the companies.
Answering a supplementary question, Abdul Khalid said the state is ready to manage water supply and that a professional management team is already in place.