The acquisition of the Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (Splash) looks set to be finalised after the company has agreed, in principle, to accept the offer worth RM2.55 billion from the Pengurusan Air Selangor Sdn Bhd (Air Selangor).

Menteri Besar Amirudin Shari said the acquisition would not involve any financial allocation from the Selangor state government and it would be carried out long-term.

He said of the RM2.55 billion, an upfront payment of RM1.9 billion would be paid by Air Selangor while the remaining RM650 million will be paid in annual instalments over nine years.

“This allows Air Selangor to operate at a reasonable operating cost, thus ensuring that water tariff will not burden the people,” he said in a press conference in Shah Alam today.

Also present were Air Selangor chief executive officer Suhaimi Kamaralzaman and Splash Holdings chairman Tan Sri Wan Azmi Wan Hamzah.

Amirudin said the acquisition of Splash at RM2.55 billion was equivalent to a 28 percent discount based on the Splash net book value at June 30, 2018, which stood at RM3.54 billion.

He said with the acquisition it would also resolve the outstanding debts incurred by Air Selangor subsidiary, Syarikat Bekalan Air Selangor Sdn Bhd (Syabas), to Splash for the purchase of treated water which currently stood at RM4.7 billion on June 30.

Amirudin said by next year, Air Selangor would emerge as the sole company to process, treat and distribute treated water to all consumers in Selangor, Kuala Lumpur and Putrajaya.

According to a statement issued by the Selangor Menteri Besar’s office, the value of the acquisition was fair and reasonable based on the principle of ‘a willing buyer, a willing seller’ and also obtained confirmation from independent valuers appointed by the Selangor and Federal governments.

Former Prime Minister Najib Razak had previously claimed that the Selangor government would acquire Splash for RM2.7 billion but it was refuted by Economic Affairs Minister Mohamed Azmin Ali.

During the event, Amirudin also witnessed the handing over of the offer letter by Suhaimi to Wan Azmi.