KUALA LUMPUR: Konsortium Abass Sdn Bhd has accepted the Selangor government’s offer of RM946 million inclusive of liabilities to be assumed by the state government.

However, Puncak Niaga Holdings Bhd said it could not accept the offer price of RM1.93 billion for Puncak Niaga Sdn Bhd (PNSB).

As for Puncak’s 70% owned subsidiary, Syarikat Bekalan Air Sdn Bhd (Syabas), it said the latter’s board and shareholders were unable to arrive on a decision on the offer price of RM3.36 billion.

Kumpulan Perangsang Selangor Bhd (KPS) said on June 29 that ABASS’s holding company, Titisan Modal (M) Sdn Bhd in principle accepted the offer price from the State Government of RM946 million.

KPS added the RM946 million included liabilities to be assumed by the State Government and/or retained at ABASS of RM779 million (inclusive of Titisan borrowing) and equity value of RM167 million.

Meanwhile, Puncak Niaga said the offer price of RM1.936 billion was not acceptable to PNSB because PNSB disagreed with the valuation method adopted by the Selangor Government’s of 1.0 times book value of the assets.

“The discounted cash flow (DCF) method is the more appropriate valuation method for concession companies which is commonly applied in corporate mergers and acquisitions,” said Puncak Niaga.

As for Syabas, Puncak said the Syabas board and shareholders were unable to arrive on a decision onthe offer and the offer price of RM3.361 billion.

“Any proposal to dispose, convey, assign or transfer the assets of Syabas as well as any proposal for the acquisition, takeover, amalgamation or merger affecting Syabas would require the prior written consent of the Federal Government as the golden shareholder of Syabas under the Syabas concession agreement.

“To date, Syabas has not received or been informed of any instruction or decision from the Federal Government in respect of the same,” it added.