KUALA LUMPUR: OSK Holdings Bhd’s proposed takeover of PJ Development Holdings Bhd (PJD) has fallen through as the former only holds 89.36% of PJD, short of the 90% required to privatise the company.

In a filing with Bursa Malaysia on Monday, it was revealed that OSK only held 89.36% of PJD at the close of the offer.

To recap, OSK Holdings’ single largest shareholder Tan Sri Ong Leong Huat had planned to take over OSK Property Holdings Bhd and PJD, in a proposed merger to diversify its business portfolio into other viable areas, in particular the property sector.

In order for the merger to go through, both OSK Property and PJD would need to be privatised, with acceptances from at least 90% of the shareholders in the two companies.

PJD’s public shareholding spread pursuant to the takeover by OSK Holdings was 10.62%, which does not comply with the public shareholding spread requirement, which stipulates that a listed issuer must ensure at least 25% of its total listed shares are in the hands of public shareholders.

Compared with a year ago, PJD’s share price has fallen by 27% and it closed at RM1.52 yesterday.

In a separate filing, it was revealed that OSK Property Holdings counter will be suspended with effect from 9am on Oct 22, as its public shareholding spread stood at only 5.92%, less than 10% of the total OSK Property shares in issue, excluding treasury shares.

The suspension will only be uplifted by Bursa Securities, upon full compliance with the public shareholding spread requirements.

This article first appeared in digitaledge Daily, on September 9, 2015.