OSK Holdings Bhd (OSKH) is taking another shot at gaining full control of PJ Development Holdings Bhd (PJ Dev), after failing to cross the 90 percent threshold to take the company private a year ago.
RHB Investment Bank revealed that OSKH is making a cash offer of RM1.50 per share for the remaining shares it does not own, representing 10.71 percent of the paid-up capital of PJ Dev.
The company is also offering 50 cents per warrant for the remaining 45.47 million warrants that it does not own.
Last year, OSKH offered RM1.56 per share and 60 cents per warrant. During the close of acceptances on 7 September 2015, the company ended up with valid acceptances which raised its shareholding to 89.29 percent.
Notably, OSKH had planned to form a mega property company by merging OSK Property Holdings Bhd and PJ Dev. It made takeover offers to the shareholders of both companies, with the aim of taking them private should it manage to own in aggregate 90 percent of their paid-up and issued capital.
While it only managed to take OSK Property private and not PJ Dev, the merger was still carried out.
According to RHB Investment Bank, the latest offer will be open for acceptance for at least 21 days starting from the date of posting of the offer document.
In the event that it crosses the 90 percent shareholding threshold, OSKH will seek to delist PJ Dev.
OSKH explained that the offer provided it with an opportunity to fully own PJ Dev and allow it to have greater autonomy in reorganising the corporate structure, rationalise the business activities as well as streamline the operations of the enlarged group of companies to create cost synergetic benefits and achieve greater economies of scale.
“The de-listing of PJ Dev arising from the proposed offer is also expected to eliminate the administrative efforts and costs in maintaining the listing status of PJ Dev and re-divert resources towards its core businesses,” it added.
Separately, OSKH announced that earnings for Q2 ended 30 June dropped 11 percent to RM43.65 million from the previous year while revenue climbed from RM13.78 million to RM309.53 million.
For 1H 2016, earnings jumped 20 percent year-on-year to RM113.27 million while revenue rose from RM27.56 million to RM657.81 million.
OSKH said the increase in revenue was primarily contributed by the newly purchased subsidiary companies – PJ Dev and OSK Property.
“The first half-year revenue consists of new revenue streams from property, construction, industries and hospitality segments as well as higher revenue from the existing capital financing and property investment divisions,” it said.
Mangalesri Chandrasekaran, Editor at PropertyGuru, edited this story. To contact her about this or other stories email mangales@propertyguru.com.my
