KUALA LUMPUR (June 10): Puncak Niaga Holdings Bhd has accepted in principle the Selangor state government's offer to acquire the former's water concessions for RM1.56 billion cash, according to Selangor Menteri Besar Tan Sri Abdul Khalid Ibrahim.

The state government has proposed to buy Puncak Niaga's 100% stake in Puncak Niaga (M) Sdn Bhd (PNSB) and 70% equity portion in Syarikat Bekalan Air Selangor Sdn Bhd (SYABAS).

Abdul Khalid said in a statement today, that Puncak Niaga had indicated its acceptance in a letter last Friday (June 6) to Kumpulan Darul Ehsan Bhd (KDEB) — the investment arm of the Selangor government. KDEB had subsequently indicated its acceptance in principle, in a reply to Puncak Niaga today.

"Both parties have agreed on the indicative terms of the takeover offer for 100% equity of PNSB and 70% equity of SYABAS, for a net cash consideration of RM1,555.3 million.

"As part of the takeover offer, the Selangor state government via its wholly-owned subsidiary, KDEB, will take over PNHB’s (Puncak Niaga's) entire equity stakes in SYABAS and PNSB, including all assets and corresponding liabilities. However, assets, liabilities and businesses under PNSB that are unrelated to water, are excluded," Abdul Khalid said.