PNSB yet to finalise date for asset handover

SHAH ALAM: Puncak Niaga Holdings Bhd's wholly owned subsidiary, Puncak Niaga (M) Sdn Bhd (PNSB), which has accepted the Selangor government's offer to take over its water concession business, is yet to finalise a date for the physical handover to Kumpulan Darul Ehsan Bhd (KDEB).
PNSB managing director, Datuk Syed Danial Syed Ariffin said the date would only be announced after the company's EGM on Jan 7, 2015.
"We need the shareholder's mandate and approval, so we have to wait for the EGM on the 7th," he told reporters at a press conference after PNSB's 20 years of excellence event here yesterday.
"It (the takeover) will be soon I would say, but not definite," he added, noting that the group needs 75% approval from its shareholders to proceed with the transaction.
Syed Danial said some 650 employees currently managing the water treatment plant, will move over to KDEB following the takeover of its water treatment plant.
On Nov 11, 2014, Puncak Niaga signed the sale and purchase agreement (SPA) with Pengurusan Air Selangor Sdn Bhd (Air Selangor) to dispose of its entire 100% equity in PNSB and 70% equity in Syarikat Bekalan Air Selangor Sdn Bhd (SYABAS) for RM1.56 billion.
Currently, PNSB manages more than 30 water treatment plants in Selangor that processes raw water for the residents of Selangor, Kuala Lumpur and Putrajaya, while Syabas manages the treated water distribution system.
Commenting on Puncak Niaga's business structure after the transaction has been completed, he said the take over of PNSB and Syabas by KDEB will only include the take over in relation to its concession businesses only, while the non-concession related businesses of PNSB will be returned to Puncak Niaga.
"Definitely, it (Puncak Niaga) will be without the concession. For those non-concessions will still be under us. We are also involved in sewerage system, treatment plant construction and pipeline laying. Those are still our business," he said.
Syed Danial however did not say if it would park its non-concession assets under a newly incorporated company or if it would be injected into an existing company under the group.
KDEB is expected to take over the operations and maintenance of the water treatment plants as well as the water supply services from Syabas, PNSB and Konsortium ABASS Sdn Bhd (Abass).