Puncak Niaga Holdings Bhd will hold an extraordinary general meeting (EGM) soon on Putrajaya's proposal for the company and to present the takeover plans to shareholders.
 
The EGM is in response to Putrajaya's decision to invoke Section 114 of the Water Services Industry Act 2006 (WSIA) to assume control of water operations in Selangor.
 
This follows the unsuccessful negotiations between the Selangor government and Puncak Niaga on the takeover.
 
The federal cabinet had decided to do so last Friday to ensure the sustainability of the water supply in Selangor, Putrajaya and Kuala Lumpur.
 
In a press statement today, Puncak Niaga chairperson Rozali Ismail appealed to Selangor and Putrajaya to consider the "billions of ringgit" invested into the company by shareholders.
 
Although Rozali did not elaborate on this, it was clear that he implied that the offer and invocation of Section 114 would cause losses for Puncak Niaga's shareholders.

"I believe the majority and minority shareholders will prioritise the interest of the domestic and commercial consumers in Selangor, Wilayah Persekutuan Kuala Lumpur and Putrajaya as well as the national interest over commercial considerations," he said.

 

Since Pakatan Rakyat took reigns of Selangor in 2008, the Selangor government has been on a campaign to take over the water assets in the state, but with little success.
 
Currently, the Selangor government has struck a deal with Putrajaya, which will help in Selangor's quest to take over the water assets in return for the state's approval of the Langat 2 water treatment plant project.