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Puncak Niaga and Syabas reject takeover offer

Posted on: February 21, 2009


Bernama – Saturday, February 21

KUALA LUMPUR, Feb 20 (Bernama) — Puncak Niaga Holdings Bhd and Syarikat Bekalan Air Selangor Sdn Bhd (SYABAS) have turned down the Selangor government’s offer to take over the two companies.

Puncak Niaga said one of the reasons why the offer was unacceptable was because the offer price by the state government was low at RM1.61 billion.

Puncak Niaga Managing Director Datuk Matlasa Hitam said the offer price could not settle the company’s debt and loan totalling RM2.2 billion which the company has invested to build and refurbish water treatment plants in compliance with the concession agreement.

“With such a low offer price without taking into account the company’s investment returns and long-term profit, Matlasa said it would be difficult to get approval of shareholders, creditors and bond holders.

Puncak Niaga has also decided to shift to the licensing regime under the Water Services Industries Act 2006 and was prepared to discuss the matter with the National Water Services Commission (SPAN).

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