Foregoing ownership of assets. Gamuda’s 40%-owned water concessionaire Splash has sweetened its RM10.75bn takeover offer for water assets in the Klang Valley by foregoing the ownership of the assets to bring the offer in line with “the spirit of the Water Services Industry Act 2006 (WSIA)”. Under the revised offer, the Government, via Pengurusan Aset Air Bhd (PAAB), will carry the water assets in its books and lease the assets at a lease rental rate of 6% p.a. with a 2.5% annual escalation to O&M operator Splash. Other key terms of Splash’s original offer will remain including that:
(1) Splash will forego the outstanding 37% tariff hike, replacing it with a 2-3% annual increase or 9% for every three years;
(2) It will be solely in charge of the O&M of water production and distribution;
(3) it will require a 30-year concession commencing 2010;
(4) It will inherit the existing non-revenue water (NRW) reduction targets of Syabas, i.e. 29%, 25%, 23%, 21%, 19%, 17% and 15% in 2010-2016.
Gamuda Berhad : Splash Sweetens Takeover Offer For Klang Valley Water Assets By Forgoing Ownership-21/04/2010
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