Focus View
Splash Deal: Declassify the water agreement
FocusM | 10 Aug 2018 00:30
Syarikat Pengeluar Air Selangor Holdings Bhd (Splash) shareholders must be smiling these days. They finally got the Selangor government to acquire Splash for a cool RM2.55bil on Aug 3. 

The acquisition of Splash completes the water asset acquisition by the state government, first initiated by its former menteri besar Tan Sri Abdul Khalid Ibrahim 10 years ago. Previously, Khalid had offered to buy Splash for RM250 mil but was rejected by two of Splash's shareholders.

Splash is 30% owned by businessman Tan Sir Wan Azmi Wan Hamzah via Sweetwater SPV Sdn Bhd while 40% is held by Gamuda Bhd. The other 30% is owned by Kumpulan Perangsang Selangor Bhd, in which the state govermet has 63% stake. 

Both Wan Azmi and Gamuda had rejected the RM250 mil deal, saying it failed to takeinto account Splash net asset value (NAV) of RM2.54 bil then. However, Khalid insisted his offer was fair as it took into account of a 12% return on equity which was logical and reasonable. 

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