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After 9-year restructuring impasse, Splash sees light at end of tunnel

KUALA LUMPUR: Syarikat Pengeluar Air Selangor Holdings Bhd (Splash) chairman Tan Sri Wan Azmi Wan Hamzah is hopeful that the nine-year-long impasse over Selangor’s water restructuring exercise will be resolved soon.

"The Selangor state and federal governments have undertaken professional valuations of Splash. As the project owner, Splash accepts the re-nationalising of water concessions," he said.

Under the water restructuring plans, the Selangor government, via Pengurusan Air Selangor Sdn Bhd, is seeking ownership and control of the state water industry through a buyout of the concessionaires’ assets.

Selangor Menteri Besar Datuk Seri Mohamed Azmin Ali had reportedly said the taking-over of Splash equity will be fully-financed by Pengurusan Aset Air Berhad (PAAB), which was corporatised under the Finance Ministry.

Splash is one of four water concessionaires in Selangor. The others are Syarikat Bekalan Air Selangor Sdn Bhd, Puncak Niaga (M) Sdn Bhd and Konsortium ABASS Sdn Bhd.

Splash operates the Selangor dam and two water treatment plants. Wan Azmi has a 30 per cent stake in Splash, via The Sweet Water Alliance Sdn Bhd.

"We want a closure that is fair, so that all stakeholders can move on. Our main concern is to have Splash accorded fair valuation according to its one-time book value," he told NST Business when met at the listing of Rohas Tecnic Bhd on Bursa Malaysia this morning.

"As at Dec 2016, Splash's book value is RM3 billion. We're not even pressing for inclusion of the remaining 14 years of Splash's concession. In my opinion, this is already a huge discount," he added.

The other shareholders of the profitable Splash are Gamuda Bhd, with a 40 per cent stake and Selangor-controlled Kumpulan Perangsang Selangor Bhd, with the remaining 30 per cent.

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