PETALING JAYA: The acquisition of Syarikat Pengeluar Air Sungai Selangor Holdings Bhd (Splash) by Pengurusan Air Selangor Sdn Bhd (Air Selangor) has been completed after the RM1.9 billion upfront sum payment was made.
Gamuda Bhd and Kumpulan Perangsang Selangor Bhd (KPS) told Bursa Malaysia that the conditions precedent in the sale and purchase agreement (SPA) were fulfilled on April 22 and the offer has now become unconditional.
Following that, Splash, in which Gamuda and KPS own 40% and 30% stake respectively, received the RM1.9 billion upfront sum from Air Selangor on April 24. The remaining 30% stake in Splash is held by The Sweet Water Alliance Sdn Bhd, which is controlled by businessman Tan Sri Wan Azmi Wan Hamzah.
“As such, the offer has been completed on even date. Accordingly, Splash shall cease to be a subsidiary of Splash Holdings with effect from April 24, 2019,” said Gamuda and KPS.
Splash is the last pending water asset under the Selangor water restructuring exercise. Puncak Niaga Sdn Bhd, Syarikat Bekalan Air Selangor Sdn Bhd and Konsortium Abbas Sdn Bhd sold their water assets for RM2.47 billion, RM3.11 billion and RM990 million, respectively.
Air Selangor inked SPAs with Gamuda and KPS in September 2018 to acquire Gamuda’s 40% stake and KPS’ 30% stake in Splash. The total purchase price of RM2.55 billion to be paid by Air Selangor for the 100% stake of Splash will be distributed via upfront sum of RM1.9 billion, followed by nine annual instalments for the remaining RM650 million.
Once completed, Gamuda and KPS stand to receive total gross proceeds of RM1.02 billion and RM765 million for their shareholdings in Splash.