OSK’s PJ Development takeover deal falls through

by **Cals** Tue 08 Sep 2015, 21:06

OSK’s PJ Development takeover deal falls through

By Supriya Surendran / theedgemarkets.com | September 8, 2015 : 11:22 AM MYT

KUALA LUMPUR (Sept 8): [size=16]OSK Holdings Bhd ([You must be registered and logged in to see this image.] Valuation: 2.60, Fundamental: 1.40) proposed takeover of PJ Development Holdings Bhd(PJD) ( Valuation: 3.00, Fundamental: 1.90) has fallen through, as the former only holds 89.36% of PJD, short of the 90% required to privatise the company.

In a filing with Bursa Malaysia yesterday (Sept 7), it was revealed that OSK only held 89.36% of PJD at the close of the offer yesterday.

To recap, OSK Holdings single largest shareholder Tan Sri Ong Leong Huat had planned to takeover OSK Property Holdings Bhd ([You must be registered and logged in to see this image.] Valuation: 2.40, Fundamental: 1.90) and PJD, in a proposed merger to diversify its business portfolio into other viable areas, in particular the property sector.

In order for the merger to go through, both OSK Property and PJD would need to be privatised, with acceptances from at least 90% of the shareholders in the two companies.

PJD’s public shareholding spread pursuant to the take-over by OSK Holdings was 10.62%, which does not comply with public shareholding spread requirement, which stipulates that a listed issuer must ensure at least 25% of its total listed shares are in the hands of public shareholders.

Compared to a year ago, PJD’s share price has fallen by 25.9% to close at RM1.55 yesterday. At 10.44 a.m, its shares were trading at RM1.54, down 0.65% from its close yesterday with 13,200 shares traded.

In a separate filing, it was revealed that OSK Property Holdings counter will be suspended with effect from 9am on Oct 22, 2015, as its public shareholding spread stood at only 5.92%, less than 10% of the total OSK Property Shares in issue, excluding treasury shares.

The suspension will only be uplifted by Bursa Securities ([You must be registered and logged in to see this image.] Valuation: 2.10, Fundamental: 2.30), upon full compliance with the public shareholding spread requirements, where OSK Property must ensure that at least 25% of its total listed shares are in the hands of public shareholders.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)
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