Friday 29 Mar 2024
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KUALA LUMPUR (Sept 18): Permodalan Nasional Bhd (PNB) intends to take Amanah Harta Tanah PNB (AHP) private via a selective unit redemption (SUR) exercise, in which the minority unitholders will receive RM1 per unit.

The offer price of RM1 is at a 50.3% premium over the last traded price of 66.5 sen.

In a bourse filing today, AHP said its unit holder Ombak Real Estate Sdn Bhd (ORE), which is a wholly-owned subsidiary of PNB, has proposed to the real estate investment trust (REIT) to undertake an SUR paving the way to take the listed entity private and remove its listing from Bursa Malaysia.

The SUR exercise will cost PNB RM118.64 million. PNB together with its parties acting in concert collectively own 101.37 million units or 46.07%.

Prior to the proposed SUR, AHT is proposing amendments to the relevant clauses in the Deed entered into between its manager Pelaburan Hartanah Nasional Bhd (PHNB), AmanahRaya Trustees Bhd (the trustee of AHP) and AHP to allow for the proposed selective unit redemption exercise and the conversion of AHP to an unlisted REIT.

AHP will be regulated by the Securities Commission’s guidelines on REIT upon completion of the privatisation exercise.

The main real estate assets in AHP’s portfolio are Plaza VADS (30.75%) and Bangunan AHP in Taman Tun Dr Ismail (9.87%), Kuala Lumpur, shop offices in Kota Kinabalu, Sabah (0.4%) and Mydin Hypermarket Seremban 2 (55.97%) in Negeri Sembilan.

Commenting on the proposals, AHP said the move is intended to facilitate the restructuring and rebalancing of AHP’s property portfolio which may involve, among others, removing from or injecting certain assets into AHP.

Based on the analysis of the comparable REITs with assets portfolio comprising office and commercial properties, AHP said it has the smallest market capitalisation and assets size of approximately RM168.3 million and RM457.5 million respectively as on Dec 31, 2019.

Given the relatively small market capitalisation of AHP and the present economic and capital market condition, any proposals to expand and restructure the assets of AHP through capital fund raising would be challenging, it noted.

“In view of AHP’s current listing status, AHP is subject to comply with the requisite regulatory framework. Any proposals that are triggering applicable percentage threshold will require the appointment of advisers and professionals as well as the convening of extraordinary general meetings, which are lengthy and costly.

“Hence, the proposals will provide greater flexibility in executing and managing any form of restructuring or corporate exercises,” it added.

Edited ByKathy Fong
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