KUALA LUMPUR: Syarikat Pengeluar Air Sungai Selangor Sdn Bhd has rejected the Selangor government's offer to acquire all its share at RM5.96 each.
Instead, SPLASH had on Friday, Jan 28 renewed its own offer to the Selangor government and federal government of RM10.75 billion to consolidate the Selangor water industry with SPLASH.
In a statement issued via KUMPULAN PERANGSANG SELANGOR [] Bhd, SPLASH said it had on Friday replied to the Menteri Besar Selangor (Incorporated) that it was unable to accept the latter's offer.
'(The offer) undervalued the company and is also well below the previous offer made by the Selangor government to SPLASH dated July 15, 2009, which SPLASH had then accepted in good faith,' it said.
However, SPLASH, instead, renewed its own offer to the state and federal governments on April 20, 2010 of RM10.75 billion to consolidate the Selangor water industry with SPLASH as the 'top-to-toe' operator and consistent with the intentions of the Water Services Industry Act, 2006.
'SPLASH viewed that the main stumbling block thus far had been the inability to bridge the gap between what the water operators wanted (commercial value) and what the governments were prepared to pay,' it said.
SPLASH pointed out the critical issues which it had outlined must be addressed in order for the restructuring to proceed.
The water operator had also stated it was willing to work with any entity that may be proposed by the state and federal government to undertake the restructuring. However, if neither government had a preference, SPLASH was willing to proceed immediately with its proposal.
KPS is 60% owned by Kumpulan Darul Ehsan Bhd, which is controlled by Menteri Besar Selangor (Inc).
KPS nominated directors in SPLASH had abstained from deliberation and deciding on offer as the transaction is deemed to be a related party transaction.
Instead, SPLASH had on Friday, Jan 28 renewed its own offer to the Selangor government and federal government of RM10.75 billion to consolidate the Selangor water industry with SPLASH.
In a statement issued via KUMPULAN PERANGSANG SELANGOR [] Bhd, SPLASH said it had on Friday replied to the Menteri Besar Selangor (Incorporated) that it was unable to accept the latter's offer.
'(The offer) undervalued the company and is also well below the previous offer made by the Selangor government to SPLASH dated July 15, 2009, which SPLASH had then accepted in good faith,' it said.
However, SPLASH, instead, renewed its own offer to the state and federal governments on April 20, 2010 of RM10.75 billion to consolidate the Selangor water industry with SPLASH as the 'top-to-toe' operator and consistent with the intentions of the Water Services Industry Act, 2006.
'SPLASH viewed that the main stumbling block thus far had been the inability to bridge the gap between what the water operators wanted (commercial value) and what the governments were prepared to pay,' it said.
SPLASH pointed out the critical issues which it had outlined must be addressed in order for the restructuring to proceed.
The water operator had also stated it was willing to work with any entity that may be proposed by the state and federal government to undertake the restructuring. However, if neither government had a preference, SPLASH was willing to proceed immediately with its proposal.
KPS is 60% owned by Kumpulan Darul Ehsan Bhd, which is controlled by Menteri Besar Selangor (Inc).
KPS nominated directors in SPLASH had abstained from deliberation and deciding on offer as the transaction is deemed to be a related party transaction.
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