Diversified group Kumpulan Perangsang Selangor yesterday announced that its 30% associate company Syarikat Pengeluar Air Selangor Holdings Berhad (“SPLASH Holdings”) has accepted a takeover offer from Pengurusan Air Selangor Sdn Bhd (“Air Selangor”) to acquire 100% equity interest of Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (“SPLASH”).
The proposed takeover, announced on 3 August 2018, entails Air Selangor acquiring from SPLASH Holdings the entire 50 million ordinary shares and 350 million redeemable unsecured loan stocks (“RULS”) of SPLASH for a total purchase consideration of RM2.55 billion.
SPLASH Holdings and Air Selangor expect to finalise the terms and conditions of sale and purchase of SPLASH through a share purchase agreement (SPA) by 14 September 2018.
As SPLASH Holdings is an associate company of KPS, the acceptance of SPLASH takeover offer does not require approval from KPS shareholders.
The acquisition of SPLASH by Air Selangor is undertaken as part of the consolidation and restructuring of the water industry in Selangor, Kuala Lumpur and Putrajaya by the state and federal governments. This exercise is done in effort to increase water reserve margins and reduce non-revenue water (NRW), towards achieving uninterrupted water supply in Klang Valley and nationwide.