Selangor state-controlled Kumpulan Perangsang Selangor Bhd (KPS) has secured a contract worth RM162.18 million to supply various water treatment chemicals to Pengurusan Air Selangor Sdn Bhd (Air Selangor).
In an announcement to Bursa Malaysia on Tuesday, KPS said its 51%-owned unit Aqua-Flo Sdn Bhd, signed a framework agreement with Air Selangor for the two-year contract, which runs from Jan 1, 2024 to Dec 31, 2025.
Throughout the contract period, Aqua-Flo is required to deliver a performance bond of 5% of the contract amount to Air Selangor, said KPS.
The deal is deemed as a recurrent related party transaction (RRPT). KPS is 57.88% controlled by Selangor state-owned Darul Ehsan Investment Group (DEIG).
Air Selangor is a wholly owned subsidiary of Air Selangor Holdings Bhd (ASHB). Menteri Besar Selangor Incorporated (MBI) is the holding company of DEIG and ASHB.
KPS’ chairman and non-independent non-executive director Datuk Haris Kasim sits on the boards of MBI, ASHB and Air Selangor. Additionally, another KPS director, Norita Mohd Sidek, sits on the boards of MBI, DEIG and ASHB.
Because of the connections, both individuals are required to abstain from participating and voting on resolutions related to the RRPT deal.
Shares of KPS have rallied 24% from a low of 68 sen on Oct 25, to a high of 84 sen on Nov 8.
At Tuesday’s noon break, KPS ended up one sen or 1.32% to 77 sen, giving it a market capitalisation of RM413.79 million.
