Gamuda gets till Sept 3 to accept SPLASH deal

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KUALA LUMPUR (Aug 24): Gamuda Bhd has been given an extension of time until Sept 3 by Pengurusan Air Selangor Sdn Bhd (Air Selangor) to revert on the offer for its 40%-owned associate company Syarikat Pengeluar Air Selangor Holdings Bhd (SPLASH).

Prior to this, Gamuda was required to revert on the offer by Aug 27.

Splash is a wholly-owned subsidiary of Splash Holdings, in which Gamuda owns a 40% stake, while Kumpulan Perangsang Selangor Bhd owns 30%; the remaining 30% is held by Sweet Water SPV Sdn Bhd, a private investment vehicle of businessman Tan Sri Wan Azmi Wan Hamzah.

On Aug 21, Gamuda's 80%-owned Gamuda Water Sdn Bhd received a letter of offer from Air Selangor setting out the termination of the existing operations and maintenance agreement (OMA) of Sungai Selangor Water Treatment Plant Phase 3 (SSP3) with Splash, which includes the settlement of outstanding Gamuda Water's receivables from Splash and execution of a new SSP3 OMA with Air Selangor which will commence on the operational date until Dec 31, 2029.

Under the new OMA, the bulk water supply rates gets reduced by 2 sen per cubic metre (cu m) to 44 sen per cu m from operational date to Dec 31, 2018; 46 sen per cu m from Jan 1, 2019 to Dec 31, 2022; 47 sen cu m from Jan 1, 2023 to Dec 31, 2023; and 53 sen cu m from Jan 1, 2024 to Dec 31, 2029.

Gamuda shares closed two sen or 0.53% lower at RM3.77 today, with 1.21 million shares done, bringing it a market capitalisation of RM9.3 billion.