OSK Holdings to acquire OSK Property at RM2 per share and PJD at RM1.60 per share

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KUALA LUMPUR (Oct 15): OSK Holdings Bhd has proposed to acquire OSK Property Holdings Bhd and PJ Development Holdings Bhd (PJD), confirming a report by TheEdge Markets.com this afternoon.

In a filing with Bursa Malaysia this evening, OSK Holdings said it will acquire OSK Property at RM2 apiece and PJD at RM1.60 per share.

OSK Holdings said it had signed a conditional share sale agreement (SSA) with its managing director and chief executive officer Tan Sri Ong Leong Huat and the parties acting in concert (PAC) to acquire 73.6% stake in OSK Property for RM355.285 million.

This is to be satisfied entirely by the issuance of 177.643 million new shares in OSK Holdings at an issue price of RM2 apiece.

Meanwhile, OSK Holdings also signed the SSA with Ong and the PAC to acquire 31.7% stake in PJD for RM229.371 million, which will be satisfied entirely by the issuance of 114.685 million new OSK Holdings shares at an issue price of RM2 a share.

With the acquisitions, OSK Holdings will make the mandatory takeover offer to acquire the remaining 26.4% stake in OSK Property, as well as the voluntary takeover offer to acquire the remaining 68.3% stake in PJD, from the public shareholders.

Worth noting is that OSK Holdings is also proposing a bonus issue of up to 237.74 million warrants to the existing shareholders on the basis of one free warrant for every four existing shares held.

It also proposed to pay a special cash dividend of 15 sen apiece.

PJD closed 11 sen or 6.2% lower at RM1.67 today, with 967,300 shares done. OSK Property was unchanged at RM2.27, with 282,500 shares traded. OSK Holdings fell 6 sen or 2.8% to RM2.08, with 2.68 million shares done.

OSK Holdings’ market capitalisation stood at RM1.98 billion, while OSK Property and PJD’s at RM547.8 million and RM754.4 million, respectively.