Friday 29 Mar 2024
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KUALA LUMPUR (Nov 6): Shares of Puncak Niaga Holdings Bhd rose at mid-morning on Thursday after it was reported that the Energy, Green Technology and Water Minister Datuk Seri Dr Maximus Ongkili saying that the federal Government had allocated an additional RM3 billion to help the Selangor state government take over the state’s water concessionaires.

The Edge Financial Daily reported that this was based on the premise that the “Langat 2 water treatment plant must go on”.

At 9.58am, Puncak added 2.10% or seven sen to RM3.40 with 23,800 shares traded.

RHB Research in a note Thursday said the additional coffers from the federal Government could potentially translate into an improved offer for Syarikat Pengeluar Air Sungai Selangor SB (SPLASH) to entice the latter’s existing shareholders including Gamuda to take up the offer.

“On Puncak per se, we expect net proceeds of RM1.56 billion from the proposed disposal (based on the state government’s latest offer) of its water assets and operations to remain unchanged.

“That said, we are positively encouraged as this latest development could help to accelerate the completion of the proposed restructuring in its entirety,” it said.

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