OSK to look for other businesses

KUALA LUMPUR: OSK Holdings Bhd plans to maintain its listed
status and look for other businesses to embark on once it sells off its
investment bank, its founder says.

The group will be without a
core business once it sells off OSK Investment Bank Bhd to RHB Capital
Bhd (RHBCap), which leaves it at risk of becoming a Prcatice Note 17
(PN17) company.

Still, founder and major shareholder Ong Leong
Huat, 67, points out that the group will still have some other
businesses remaining like property, property-management and
money-lending.

"Along the way, my board and I - which also
comprise a lot of good business people - will look at what other
businesses we can embark on.

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"Today, the (investment banking) deal is not fully completed, (so) we
can't tell you what we are going to do next. As a businessman, if you
have the resources, definitely you'll know what to do," Ong told
reporters after the group inked a conditional share purchase agreement
with RHBCap here yesterday.

The
veteran stockbroker, which has a 32.1 per cent stake in OSK Holdings,
is ranked the 30th richest person in Malaysia by Forbes, with a net
worth of US$265 million (RM832 million).

According to a source, the group is looking to develop land next to its headquarters in Jalan Ampang here.

OSK
Holdings is selling OSK Investment to RHBCap for RM1.95 billion and
will be paid for it with 245 million new RHBCap shares and RM147.5
million in cash. The deal is expected to be completed in the final
quarter.

"It is the intention of OSK Holdings to maintain the
listing status... and apply to Bursa Securities for a waiver from being
classified as an affected listed issuer pursuant to PN17 of the listing
requirements," OSK Holdings said in a stock exchange filing yesterday.

Ong
built up the group into a regional business with a revenue of over RM1
billion since taking it over in 1982. It now has about 80-90 outfits
across eight countries.

"This (investment banking) is a very
volatile business. The market can enter into a tsunami at any time, any
moment... just look at how many such turbulences have occured in the
last 10 years," he remarked.

OSK Holding's shares, which have
shed 2.2 per cent so far this year, lagging the FBM KLCI's 1.6 per cent
gain, closed four sen higher to RM1.74 at noon yesterday before they
were suspended pending the announcement.

wonder what made them sell in the first place....