Bursa Announcements
News
Others
Dec 04, 2013
Type
Announcement
Subject
OTHERS
Description
GAMUDA BERHAD (“GAMUDA” OR “THE COMPANY”)
CONSOLIDATION OF THE SELANGOR WATER INDUSTRY – INDICATIVE TERMS AND CONDITIONS FOR PROPOSED PURCHASE OF 100% EQUITY IN SYARIKAT PENGELUAR AIR SELANGOR HOLDINGS BERHAD (“SPLASH HOLDINGS”) FROM KUMPULAN DARUL EHSAN BERHAD (“KDEB”)
The terms used herein shall, unless the context otherwise stated, bear the same meaning as those defined in the announcement dated 22 November 2013 in relation to the above.
We refer to the announcement dated 22 November 2013 in relation to the above.
On behalf of the Board of Directors of Gamuda, RHB Investment Bank Berhad (“RHBIB”) wishes to announce that Gamuda (in consultation with RHBIB) had vide its letter dated 4 December 2013 (“Letter”) informed KDEB that at this juncture, the Company is unable to consider the Offer due to, amongst others, the following:
(i) a key component in the earlier offer letter dated 20 February 2013 was removed, namely the payment of SPLASH’s surplus book value of assets over liabilities (including receivables) which has resulted in the substantial amount of surplus assets of SPLASH not being added to the Offer. This has resulted in an approximately 90% reduction in the offer consideration for SPLASH Holdings as compared to the earlier offer.
(ii) the valuation methodology of using a return on Splash Equity of 12% per annum is not fair as it does not take into account the remaining tenure of SPLASH’s concession. We are of the view that the methodology used should fairly compensate for the loss of future earnings of SPLASH over the remaining period of the concession; and
(iii) KDEB has not indicated in its Offer if it will retain the existing operations and maintenance operators of SPLASH at existing terms after the completion of the proposed purchase of SPLASH Holdings by KDEB.
However, the Company will continue to seek further clarifications on the matters raised in the Letter for all parties involved to reach mutually agreed terms and conditions.
While the Company is unable to consider the Offer at this juncture, subject to all matters being satisfactorily concluded and agreed upon, including the unconditional approval of the Board of Directors and shareholders of Gamuda and/or the appropriate and relevant authorities, the Company is willing to pursue an agreement with KDEB.However, the Company will continue to seek further clarifications on the matters raised in the Letter for all parties involved to reach mutually agreed terms and conditions.
This announcement is dated 4 December 2013.
Announcement Info
Company Name
GAMUDA BERHAD
Stock Name
GAMUDA
Date Announced
4 Dec 2013
Category
General Announcement
Reference No
MI-131204-64479
| Type | Announcement |
| Subject | OTHERS |
| Description |
GAMUDA BERHAD (“GAMUDA” OR “THE COMPANY”)
|
|
The terms used herein shall, unless the context otherwise stated, bear the same meaning as those defined in the announcement dated 22 November 2013 in relation to the above.
We refer to the announcement dated 22 November 2013 in relation to the above.
On behalf of the Board of Directors of Gamuda, RHB Investment Bank Berhad (“RHBIB”) wishes to announce that Gamuda (in consultation with RHBIB) had vide its letter dated 4 December 2013 (“Letter”) informed KDEB that at this juncture, the Company is unable to consider the Offer due to, amongst others, the following: (i) a key component in the earlier offer letter dated 20 February 2013 was removed, namely the payment of SPLASH’s surplus book value of assets over liabilities (including receivables) which has resulted in the substantial amount of surplus assets of SPLASH not being added to the Offer. This has resulted in an approximately 90% reduction in the offer consideration for SPLASH Holdings as compared to the earlier offer. (ii) the valuation methodology of using a return on Splash Equity of 12% per annum is not fair as it does not take into account the remaining tenure of SPLASH’s concession. We are of the view that the methodology used should fairly compensate for the loss of future earnings of SPLASH over the remaining period of the concession; and
(iii) KDEB has not indicated in its Offer if it will retain the existing operations and maintenance operators of SPLASH at existing terms after the completion of the proposed purchase of SPLASH Holdings by KDEB.
However, the Company will continue to seek further clarifications on the matters raised in the Letter for all parties involved to reach mutually agreed terms and conditions.
While the Company is unable to consider the Offer at this juncture, subject to all matters being satisfactorily concluded and agreed upon, including the unconditional approval of the Board of Directors and shareholders of Gamuda and/or the appropriate and relevant authorities, the Company is willing to pursue an agreement with KDEB.However, the Company will continue to seek further clarifications on the matters raised in the Letter for all parties involved to reach mutually agreed terms and conditions.
This announcement is dated 4 December 2013.
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|
Announcement Info
| Company Name | GAMUDA BERHAD |
| Stock Name | GAMUDA |
| Date Announced | 4 Dec 2013 |
| Category | General Announcement |
| Reference No | MI-131204-64479 |