KUALA LUMPUR: Puncak Niaga Holdings Bhd said the proposed RM1.5 billion disposal of its water assets to Pengurusan Air Selangor Sdn Bhd (Air Selangor) has been extended for the fourth time by another month to May 11.

In a filing with Bursa Malaysia yesterday, Puncak Niaga (fundamental: 1.5; valuation: 1.2) said both the company and Air Selangor had mutually agreed to a further extension for the fulfilment of the conditions precedent stated in the conditional sale and purchase agreement dated Nov 11, 2014.

The proposed sale entails the disposal of Puncak Niaga’s 100% stake in Puncak Niaga (M) Sdn Bhd and 70% stake in Syarikat Bekalan Air Selangor (Syabas) to the Selangor state agency.

The RM1.5 billion deal was agreed in principle last year and finally approved by Puncak Niaga’s shareholders in January. The sale is a key component in the prolonged water restructuring dispute between the opposition-led Selangor and Putrajaya.

It was reported that Selangor Menteri Besar Mohamed Azmin Ali and Energy, Green Technology and Water Minister Datuk Seri Dr Maximus Ongkili are to meet this week to discuss matters involving the master agreement signed between both governments in September last year.

Puncak Niaga shares closed 4 sen or 1.46% lower at RM2.70 yesterday, giving it a market capitalisation of RM1.12 billion.

This article first appeared in The Edge Financial Daily, on April 10, 2015.