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Malaysia: Selangor firms turn down state buyout
Malaysian water companies operating in the state of Selangor have turned down the local government's combined $1.56 billion bid to buy out their water assets, saying on Friday the offer lacked clarity.
The offers, made to Puncak Niaga Holdings Bhd, Kumpulan Perangsang Selangor Bhd and Gamuda Bhd, were the state government's attempt to avert a water tariff hike of up to 37 percent beginning April 1.
"There appears to be some inconsistencies in the offer ... and the unclear valuation method," Reuters quoted Puncak as saying in a statement.
Gamuda also issued a statement saying the offer "was not in line with generally accepted financial principles."
Pengurusan Aset Air Bhd, a federal government agency, is expected to make a more generous offer for the assets as part of the federal government's plan to overhaul the water industry, analysts said.
Selangor is the richest state in Malaysia around the capital of Kuala Lumpur and is controlled by the the People's Alliance, the coalition that is the national opposition.
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