By Jose Barrock
Water concessionaires Puncak Niaga Holdings Bhd and Kumpulan Perangsang Selangor Bhd (KPS), were among the most actively traded counters on the Bursa Malaysia, on speculation that the long awaited consolidation exercise may happen in September this year.
At 10am, KPS was up eight sen to RM1.56 buoyed by almost 5.1 million shares changing hands. Puncak meanwhile gained nine sen to RM2, with about 3.9 million shares traded.
Last week Selangor’s Menteri Besar Khalid Ibrahim had said that premier Najib Abdul Razak had written in supporting the consolidation of the water sector by the state, and had requested that newly appointed minister in charge, Maximus Ongkili to commence negotiations on the consolidation.
However water company officials were unaware of any negotiations that were on-going.
“There’s nothing on as far as we know… maybe valuations are being looked at again,” an official from one of the water companies said.
Puncak has two concessions under its belt, one for water treatment held under Puncak Niaga (M) Sdn Bhd, and one for distribution to Selangor, Kuala Lumpur and Putrajaya, under its 70% unit Syarikat Bekalan Air Selangor Sdn Bhd (Syabas).
KPS has the remaining 30% in Syabas, 30% in Syarikat Pengeluar Air Selangor Holdings Bhd (Splash), which is another water treatment company and about 90% of Titisan Modal Sdn Bhd which wholly owns Konsortium Abass Sdn Bhd, which also has a water treatment business.
Other shareholders of Splash include construction giant Gamuda Bhd, with 40% equity interest, and corporate player Wan Azmi Wan Hamzah, with 30%.
Rozali Ismail
Rozali Ismail who controls 40% of Puncak could not be reached for comment.
So far, the state has made four attempts to consolidate the water assets making offers ranging from RM5.7 billion to the latest RM9.65 billion earlier this year.
The consolidation exercise has been difficult to conclude as Rozali is closely linked to Umno, the lead member of the ruling coalition, while the Selangor is run by the opposition Pakatan Rakyat.
The Federal Government also holds a golden share in Syabas, while the state has one at the Splash level.
Rozali has basically said that he will not sell Puncak’s assets in Syabas and PNSB without getting the green light from the Federal Government, which has the golden share.
Other than water, Puncak recently ventured into oil and has via the acquisition of a pipe laying barge from Global Offshore.
News reports have it that Puncak with a foreign partner is in the running for a risk service contract from state controlled oil major Petroliam Nasional Bhd.
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