Value of SPLASH acquisition consistent with various appraisals

SHAH ALAM: The RM2.55 billion valuation that the Selangor government needs to acquire a utility firm to complete the state's water restructuring exercise is consistent with valuations made by independent appraisers, according to Mentri Besar Amirudin Shari.
He pointed out that RHB investment bank, which was appointed by the state, had placed the acquisition between RM2.48 billion and RM3.024 billion, based on Syarikat Pengeluar Air Selangor Holdings' (SPLASH) nett book value on March 31 this year.
He also said that the federal government via the Energy, Technology, Science, Climate Change and Environment Ministry had appointed an international evaluator and their evaluations were similar to those of RHB's.
"On July 5, the ministry's evaluator sent a letter suggesting a value of RM2.7 billion. We thought it was a considerable amount so we proceeded with the offer," he said during the 14th Selangor State Legislative Assembly sitting.
Meanwhile, Shari reiterated that Selangor residents will continue to receive free water throughout the state.
He added that the state government will not increase water tariffs to the people of the state, to ensure that they are happy and unencumbered from additional fees.
"The state government maintains the principle that any decision or action taken with water tariffs will depend on whether the rakyat will be burdened by this," he said.
He was answering a query posed by Lau Weng San (Banting-PH) and Dr Ahmad Yunus Hairi (Sijangkang-PAS) on whether the take over of Splash by the government would have an effect on water tariffs in the state.
The acquisition of SPLASH by Air Selangor was 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 an effort to increase water reserve margins and reduce non-revenue water (NRW) towards achieving uninterrupted water supply in the Klang Valley and nationwide.