KUALA LUMPUR (July 14): Puncak Niaga Holdings Bhd has announced today that it has decided to extend the disposal of its water assets to Pengurusan Air Selangor Sdn Bhd (Air Selangor) by two month to Sept 14 — the seventh extension.

In a filing with Bursa Malaysia today, Puncak Niaga (fundamental: 1.9; valuation: 2.1) and Air Selangor had today mutually agreed on the further extension for the fulfilment of the conditions precedent stated in the conditional sale and purchase agreement (SPA) dated Nov 11 last year.

"The board's decision is premised on the fact that both the federal and state government had executed the Supplemental Master Agreement on July 10," it added.

The extension comes on the heel that the federal and state government had on last Friday entered another supplement agreement to extend the deadline for the water asset consolidation exercise.

Under the SPA, Puncak Niaga will dispose of its entire equity interest in Puncak Niaga (M) Sdn Bhd, together with a 70% stake in Syarikat Bekalan Air Selangor Sdn Bhd (Syabas) to Air Selangor, for RM1.55 billion, cash.

Under the terms and conditions of the SPA, all conditions precedent were supposed to be fulfilled on Jan 12.

Puncak Niaga's share price gained four sen or 1.5% at RM2.77, with a market capitalisation of RM1.136 billion.

(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)