Press Releases

• Received RM570.0 million on 24 April 2019 from Air Selangor post the completion of SPLASH divestment
• Special dividend of 32.6 sen per ordinary share translating into a 21% yield based on current share price

Kuala Lumpur, Malaysia, 26 April 2019 – Kumpulan Perangsang Selangor Berhad (“Perangsang Selangor” or “the Company”) (KPS, Bursa: 5843; Bloomberg: KUPS:MK; Reuters: KPSB.KL), an investment holding company having focused investments in the manufacturing, trading, licensing and infrastructure sectors, announced today that it has declared a special dividend of 32.6 sen per ordinary share for the financial year ending 31 December 2019. The special dividend will be payable on 28 May 2019 to shareholders registered in the Records of Depositors at the close of business on 15 May 2019.

The aggregate amount of the payment to be made in connection with this special dividend is RM175,187,635.

Recall that on 9 August 2018, Perangsang Selangor’s 30%-associate Syarikat Pengeluar Air Selangor Holdings Berhad (“SPLASH Holdings”) accepted Pengurusan Air Selangor Sdn Bhd’s (“Air Selangor”) takeover offer of Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (“SPLASH”) via the acquisition of 50,000,000 ordinary shares of RM1.00 each and 350,000,000 Redeemable Unsecured Loan Stocks in SPLASH for a total cash consideration of RM2.55 billion.

Recently on 24 April 2019, SPLASH Holdings had received a sum of RM1.9 billion from Air Selangor being the 1st Tranche payment for the SPLASH divestment, of which Perangsang Selangor is entitled to RM570.0 million. Subsequently on the very same day, Perangsang Selangor, via its wholly owned subsidiary Viable Chip (M) Sdn Bhd who owns 30% of SPLASH Holdings, received the RM570.0 million.

In addition to the announcement of this special dividend, as highlighted in the notice for the 42nd Annual General Meeting (“AGM”) of the Company which will be held on 23 May 2019, Perangsang Selangor’s Board has proposed for shareholders’ approval a final annual dividend for the financial year ended 31 December 2018 amounting to RM22.8 million or 4.25 sen per ordinary share. The final annual dividend will be payable on 19 July 2019, entitled to shareholders registered in the Records of Depositors at the close of business on 28 June 2019.

Ahmad Fariz Hassan, Managing Director / Group Chief Executive Officer of Perangsang Selangor said:

“Returning capital to shareholders in the form of this 32.6 sen special dividend is a reflection of Perangsang Selangor’s recent results of its corporate exercise, strong financial position and our confidence in the Company’s financial future. It is also a way of rewarding our shareholders for their continuous support on the Company’s corporate exercise and strategic initiatives. Our excess capital remains at a level which will afford us the financial flexibility to grow our business and ensure a heathy balance sheet.”

In a media engagement last year, Ahmad Fariz indicated that the Board was considering three options as to how the proceeds from SPLASH divestment would be utilised, one of which was for distributing special dividend. The other two probable options were for paring down borrowings and funding future business expansion.

The conclusion of Perangsang Selangor’s investment in SPLASH not only marks the resolution on the consolidation of the water industry but it also allows Perangsang Selangor to sharpen its focus on the core businesses in manufacturing, trading, licensing and infrastructure sectors, ultimately growing further values for the stakeholders.

“With the completion of SPLASH divestment, we can now be fully focused in executing our Business Transformation and Value Creation Plans to unlock the full potential of our core businesses, thus on track to create long term value and generate greater sustainable returns for Perangsang Selangor and all our shareholders,” Ahmad Fariz concluded.

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About Kumpulan Perangsang Selangor Berhad (www.kps.com.my)

Incorporated on 11 August 1975, Kumpulan Perangsang Selangor Berhad (“Perangsang Selangor” or “the Group”) is a public limited liability company listed on the Main Market of Bursa Malaysia Securities Berhad under the Industrial Products & Services Sector. Perangsang Selangor has focused investments in four core sectors namely, the Manufacturing, Trading, Licensing and Infrastructure. While strengthening our business to optimise returns, Perangsang Selangor is committed to providing significant contributions towards sustainable development in the areas of economic, environment and social for the benefits of all stakeholders.

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