In a filing with Bursa Malaysia yesterday, the company said both Ong and Land Management collectively owned 49.96 million shares of RM1 in OSK Property, representing a 26.66% stake, and was looking to buy up the remaining 137.42 shares in the company for 87 sen per share.
They are also looking to buy 47.81 million warrants not owned by them for some 6 sen per warrant.
Ong is also a substantial shareholder and director of OSK Investment Bank and OSK Holdings Bhd as well as a director of Bursa Malaysia.
The shareholders of Land Management Khor Chai Moi, Ong Yin Suen, Ong Yee Ching, Ong Ju Yan, Ong Yee Min and Ong Ju Xing also held direct stakes in OSK Property amounting to 5.43%. Yin Suen, Yee Ching and Ju Xing are also directors of Land Management.
OSK Property's share price gained 7.5 sen within the day to end at 87 sen yesterday on news of the proposed takeover. Based on Thursday's closing of 79.5 sen, the offer price provides a 9% premium but that premium was wiped out yesterday when the company saw its share price end at the offer price of 87 sen.
For the financial year ended Dec 31, 2010 (FY10), the company posted a revenue of RM144.9mil against RM125.8mil a year ago. Net profit for FY10 was RM11.9mil against RM5.1mil in FY09.
As at the end of FY10, OSK Property's cash and cash equivalents stood at RM53.2mil.
The company currently trades at 11.25 times price/earnings ratio and has a market capitalisation of RM163.02mil.
Properties under the group's stable include luxury homes, townships and The Atria Shopping Complex in Damansara Jaya.
Proposed privatisation of smaller property companies seems to be picking up steam following an announcement earlier this year that Low Chuan Holdings Sdn Bhd, owned by the founding family of the Low Yat Group, was looking to privatise Asia Pacific Land Bhd.
The Low Yat Group had offered 45 sen per AP Land share, pricing the stock at 0.43 times its book value of RM1.05.
By The Star
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