The Selangor government is prepared to pay out RM9.65 billion to take over the four private water companies in the state and this sum is the final offer, Menteri Besar Abdul Khalid Ibrahim said today.

azlan The four companies - Syarikat Bekalan Air Selangor Bhd (Syabas), Konsortium Abbas Sdn Bhd, Puncak Niaga Sdn Bhd, and Syarikat Pengeluar Air Selangor Holdings Bhd - have until 5pm on Dec 4 to respond to the offer made through state-owned Kumpulan Darul Ehsan Bhd (KDEB).

"We hope the shareholders of the companies will accept this firm offer, which will provide profitable returns.

"If the shareholders feel that they deserve an additional amount, they can always request for an international arbitration. We hope we can break the impasse as the state is ready with our takeover plans," Khalid said in a statement.  

The takeover exercise is part of the state government’s bid to restructure the water industry in Selangor since Pakatan Rakyat took over the state in 2008.

It had previously made four offers ranging from RM5.7 billion to RM9.65 billion to take over the companies.

The federal government, which is a golden shareholder in the four companies, had set a Dec 31 deadline for the takeover talks to conclude.

According to Khalid, the offer includes purchasing the equity of all four companies including returns of 12 percent per annum up to Dec 31, 2012.

Under the offer, KDEB will also settle all water-related debts of the four companies.