Thursday 28 Mar 2024
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This article first appeared in The Edge Financial Daily, on September 29, 2015.

 

KUALA LUMPUR: OSK Holdings Bhd, which is controlled by tycoon Tan Sri Ong Leong Huat, has successfully completed the consolidation of its property business, with the receipt of valid acceptances to take over OSK Property Holdings Bhd (OSK Prop).

In a filing with Bursa Malaysia yesterday, it was revealed that OSK Holdings now has 317.24 million OSK Prop shares, representing approximately 96.81% of the voting shares; it has also received valid acceptances of not less than nine-tenths (9/10) in the nominal value of the offer shares.

Premised on the valid acceptances of not less than 9/10 in the nominal value of the offer shares on or before the closing date of the offer, OSK Holdings intends to invoke the provisions of Section 222 of the Capital Markets and Services Act (CMSA) 2007, which will allow the company to compulsorily acquire the remaining offer shares in which no valid acceptances were received.

“In such [an] instance, OSK Holdings will not maintain the listing status of OSK Prop, and OSK Prop will be delisted from Bursa Securities accordingly,” read OSK Holding’s announcement.

The offer will remain open for acceptances until 5pm on Oct 9, 2015, which is the final closing date of the offer.

In accordance with Main Market listing requirements, Bursa Securities shall suspend trading of the securities of OSK Prop with effect from Oct 20, 2015, which is upon the expiry of five market days from the final closing date, read the filing.

The suspension will result in the securities of OSK Prop no longer being traded on Bursa Securities.

“In addition, OSK Holdings will, at any time within two months from today (yesterday), proceed to exercise its rights to compulsorily acquire the remaining offer shares in accordance with the provisions of Section 222 of the CMSA,” said OSK Holdings.

To recap, OSK Holdings launched its takeover bid for OSK Prop and PJ Development Holdings Bhd (PJD) at RM1.95 and RM1.56 per share respectively to enable the enlarged OSK Holdings group to consolidate the property development businesses of both PJD and OSK Prop with OSK Holdings, which may lead to greater economies of scale and the benefits of cost synergies.

OSK Holdings successfully completed its takeover bid of PJD with an 89.4% stake at the close of the offer period on Sept 7. It intends to maintain the listing status of PJD.

OSK Holdings shares closed unchanged at RM1.62 yesterday, with a market capitalisation of RM2.24 billion.

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