PDZ’s asset acquisition is off

by **Cals** Mon 17 Feb 2014, 18:43

Business & Markets 2014

Written by Jose Barrock & Kathy Fong of theedgemalaysia.com

Monday, 17 February 2014 10:13

KUALA LUMPUR: PDZ Holdings Bhd’s corporate exercise recently involving the takeover of private company Efogen Sdn Bhd has hit a brick wall, according to sources familiar with the matter.

It is understood that a meeting and subsequently an announcement to Bursa Malaysia pertaining to PDZ’s acquisition was to have been made last Friday, but this was not done as talks had fallen through.

An executive familiar with the deal confirmed that the talks had stalled, but said this was just one party and that there were other interested parties eyeing PDZ as well.

“This deal has been aborted ... it’s not fair for me to talk about it or give you the details,” the executive said, adding that given PDZ’s clean balance sheet, there are still other suitors, but declined to elaborate.
Officials close to PDZ’s controlling shareholder, Tan Sri Robert Tan Hua Choon, were not willing to comment. One of the tycoon’s associates merely said, “Maybe … It is possible” when asked if the talks had fallen through.

When news of the acquisition hit the streets a few weeks ago, the share price of the hardly-traded PDZ doubled from eight sen (from the beginning of the year) to 15.5 sen last Friday, buoyed by heavy trading volume.

According to market observers, it is odd that the talks stalled as both parties are linked to former finance minister Tun Daim Zainuddin.
Tan is a known associate of Daim, while Efogen’s shareholders include Tan Sri Abdul Rashid Abdul Manaf, who was Daim’s
former lawyer. Abdul Rashid has almost 21% of Efogen.

Other shareholders of Efogen, which is involved in oil and gas, include GMV-Efogen Sdn Bhd that owns about 65%. The balance of 14% is held by Johany Jaafar.