This comes just two days after former prime minister Najib Razak said the state would purchase SPLASH for RM2.7 billion in a deal he said would benefit a “Tan Sri” with a 30% stake in the company.
Economic Affairs Minister Mohamed Azmin Ali has denied the claim.
The deal is part of a restructuring process of Selangor’s water industry that was put on hold due to a stalemate between the state government and the then Barisan Nasional-led federal government.
Azmin, who was formerly Selangor menteri besar, had refused a proposal where the state would bear 40% of the takeover with the rest from the federal government.
Amirudin during a brief press conference added that the takeover value of RM2.55 billion is after a 28% discount, based on the net book value of SPLASH as of June 30, which stood at RM3.54 billion.
He said Air Selangor will make an upfront payment of RM1.9 billion while the remaining RM650 million will be paid over nine years.
“It is a long-term payment which allows Air Selangor to operate at a reasonable cost, and to ensure the water tariffs will not burden people,” he said during a handover of letter ceremony.
The offer letter was given by Air Selangor CEO Suhaimi Kamaralzaman to SPLASH Holdings chairman Wan Azmi Wan Hamzah.
Amirudin added that the agreement was finalised after a year of discussions between Air Selangor and SPLASH.
He added it was a historical moment as a solution had been found after 10 years. The Pakatan Rakyat government had taken over the state in 2008.
He added the value of the takeover is fair as it follows the principle of “willing buyer, willing seller” and it was valued by independent evaluators from the Selangor and federal governments.
He added the takeover will also solve the outstanding debts owed by Syabas to SPLASH amounting to RM4.7 billion till June 30.
Air Selangor is a special purpose vehicle created by the Selangor government to take over water concessionaires in Selangor, Kuala Lumpur and Putrajaya.
Air Selangor has now successfully taken over Syarikat Bekalan Air Selangor Sdn Bhd, PNSB and ABASS Consortium.
Since the takeover of the three concessionaires, Air Selangor has built two water treatment plants in Semenyih 2 and Labohan Dagang.
Amirudin said all water concessions will end by the year-end and by next year, Air Selangor will be the only company to process, treat and distribute water to Selangor, Kuala Lumpur and Putrajaya.