KUALA LUMPUR: Shares of GAMUDA BHD [] rose to RM3.09 in late afternoon trade on Wednesday, April 21 after its 40% associate Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (SPLASH) made a revised takeover offer for all the water concessionaires in Selangor.
Gamuda rose 14 sen to RM3.09 at 3.07pm with 2.6 milion shares done.
CIMB Equities Research had an Outperform and target price of RM4.65 after SPLASH's revised offer for Selangor water assets. It said Gamuda remains an Outperform as it will still control 40% of the enlarged SPLASH.
Under the revised offer, SPLASH will not own, but lease water assets from Pengurusan Aset Air Bhd (PAAB). Its earlier offer of RM10.75 billion remains unchanged.
CIMB Research said the acquisition price of RM10.8 billion is unchanged but now comprises PAAB’s RM8.1 billion offer topped up by SPLASH’s offer of RM2.6 billion.
It added that while this development is a surprise, PAAB’s involvement at this juncture is understandable as SPLASH’s operating structure post-consolidation should comply with the asset-light model under the Water Services Industry (WSI) Act 2006.
It also said this was a positive turn of events as the new proposal has the backing of the federal government and an even better chance of going through.
About Me
- Nuang
- Ibrahim bin Ramli@Nuang started his career with CIMB Wealth Advisors Berhad as Agency Manager in April, 2008.Previously he was an Internal Auditors and Accounts Executive with Perodua Sales Sdn Bhd since 17 August, 1994. His background:- 1.Certified of Achievement for Master Sales Leadership from Dr Lawrence Walter Ng of President of The Art Of Learning and International Of Learning Without Learning 2.Certified for eXtra Ordinary Performance of Lawrence Walter Award Certificate for One Million Ringgit Club 2007 3. Certified Life & General insurances 4. Conferred with Diploma in Business Studiess & Bachelor of Business Admin(Hons)Finance from UiTM, Terengganu Branch & Shah Alam respectively;
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