Wednesday, July 17, 2013

Puncak Niaga/KPS ...

Market observers opine that the Selangor Government’s latest offer to consolidate the state’s water sector, PNH may potentially pocket net cash proceeds of about rm1.0 billion.
 
Selangor’s offer in March 2013 valued PNH’s 100% interest in Puncak Niaga Sdn Bhd and 7-% stake in SYABAS at rm5.6 billion.
 
However, it has yet to take into account the company’s borrowings to pay off at PNSB and SYABAS level to complete the disposal of its stakes in both firms.
 
Netting these off, estimate that PNH could potentially pocket net cash proceeds of just below rm1.0 billion, which translates into rm2.42 per share.
 
The settlement of borrowings related to the water assets and the receivables due from the state government have yet to be sorted out.
 
Furthermore, PM Datuk Seri Najib has yet to make a public statement on the Federal government’s stance.
 
With UMNO election coming up in Nov 2013, observers envisage that the current (July 2013) water deadlock crisis in Selangor will likely be resolved later than sooner.
 
There is also a possibility that the Federal and Selangor governments may instead focus on pushing through the official awarding of Langat 2 water treatment plant in the near term.

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