SPLASH takeover price below market value, says MB

Selangor Menteri Besar Amirudin Shari says the RM2.55 billion deal is a win-win agreement.

SHAH ALAM: The RM2.55 billion takeover offer price for Syarikat Pengeluaran Air Sela­ngor Sdn Bhd (SPLASH) by Pengurusan Air Selangor Sdn Bhd (Air Selangor) is far below the market value, says Selangor Menteri Besar Amirudin Shari.

He said the takeover offer was also below the price estimated by an independent international valuer.

“When an unacceptable offer was made in 2013 and 2014, we had to postpone (the takeover process) for five years.

“While the takeover offer price of SPLASH should be between RM1.9 billion and RM2 billion, the price has risen to RM3.5 billion.

“That is why a willing seller-willing buyer basis was a solution that was acceptable, and it’s based on a win-win situation.

“Finally, because of our negotiations, the price that we offered was below the market price. It was below the valuation made by the independent valuer,” he said after attending a Budget 2019 roundtable here today.

He was asked to comment on former menteri besar Abdul Khalid Ibrahim’s assertion that the state government might have paid over 10 times more than what the then state government had offered during his tenure in 2013.

Khalid had claimed the strategy could offer an opportunity for SPLASH shareholders to reap greater profits and compensation while at the same time placing a heavy burden and responsibility of repayment on the people, with a high tariff being imposed.

Amirudin said the state government should be objective in its mission to resolve the water restructuring issue and ensure that the water supply situation in Selangor is well handled.

Asked whether the state government will review the free water scheme to benefit the bottom 40% income group (B40), he said the matter will be discussed at a retreat on the implementation of the Inisiatif Peduli Rakyat (IPR).

“It is not just water. After 10 years, it’s high time we review the IPR.

“We will look into what is appropriate, what is applicable and what is probably a burden to the government.

“I will present the IPR concept after 10 years of implementation at the tabling of the 2019 Budget in November,” he said.

Amirudin also said the state government had spent over RM500 million over the last three years to replace 400km of the 22,000km of water pipes in the state.

This move, he said, had reduced the non-revenue water rate to 30% from 33% previously, adding it was one of the more notable achievements of the state government and Air Selangor.

Selangor bought SPLASH at 10 times its price, claims Khalid Ibrahim