(Reference is made to the announcements dated 1 December 2016, 28 February 2017, 19 May 2017, 28 August 2017, 13 November 2017, 13 February 2018, 7 May 2018 and 9 August 2018 made by Ranhill pertaining to the Memorandum of Understanding between Ranhill’s subsidiary, Ranhill SAJ Sdn Bhd (formerly known as SAJ Ranhill Sdn Bhd) (“SAJ”) and Indah Water Konsortium Sdn Bhd (“IWK”)

1. INTRODUCTION

The Company is pleased to announce that its subsidiary, SAJ has concluded the Memorandum of Understanding on the Joint Billing Arrangement between SAJ and IWK, and have signed the Joint Billing Agreement on 7 November 2018, to undertake the joint billing exercise for water supply and sewerage services in the state of Johor (excluding Johor Bahru City and Pasir Gudang which are currently managed by respective city councils) with the intention to pursue the integration of water supply and sewerage services in the state of Johor.

2. INFORMATION

SAJ is the sole licensee for water treatment and distribution in the state of Johor pursuant to the license issued by National Water Service Industry Commission.

IWK is a company owned by Minister of Finance Incorporated, is Malaysia’s national sewerage company which has been entrusted with the task of developing and maintaining sewerage system.

The joint billing exercise involved the development of a combined bill incorporating the prevailing water supply tariff and sewerage tariff rate in a single bill, with an agreed fee payable to SAJ by IWK for every joint bills issued by SAJ. Upon successful implementation of the joint billing exercise and subject to approvals from the relevant authorities, SAJ will pursue a complete integration of water supply and sewerage operations, and ultimately take over the sewerage operations in the state of Johor. 

3. FINANCIAL EFFECTS

The joint billing exercise will not have any material effects on the earnings of the Company for the financial year ending 31 December 2018.

4. DIRECTORS’ AND MAJOR SHAREHOLDERS’ AND/ OR PERSONS CONNECTED WITH A DIRECTOR OR MAJOR SHAREHOLDER’S INTEREST

None of the Directors and/ or substantial shareholders of the Company and persons connected with them has any interest, direct or indirect, in the Joint Billing Agreement.

This announcement is dated 8 November 2018.