PETALING JAYA: The board of OSK Holdings Bhd is meeting as early as today to discuss the potential acquisition of OSK Property Holdings Bhd and PJ Development Holdings Bhd, said sources.
“Tentatively, the plan is for OSK Holdings to acquire OSK Property and PJD Development,” said a source familiar with the matter.
Another source said: “OSK Holdings is considering the route of issuing shares of the company for the potential acquisitions."
Just last Thursday (Oct 9), OSK Holdings’ Chief Executive Officer and Group Managing Director Tan Sri Ong Leong Huat said a merger and consolidation exercise between PJD and OSK Property “will be quite soon”.
Ong is also the non-executive chairman of PJD, as well as the group managing director and chief executive officer of OSK Property.
Talking to reporters at a press conference after PJD’s EGM on Oct 9, Tan said that once OSK Property and PJD consolidated, the entity would be able to deliver better results and do bigger things, as well as create higher efficiencies and economies of scale.
“It is not our intention to privatise, but rather to synergise,” said the veteran stockbroker, then adding that the consolidation will result in the creation of a first-tier property developer.
Ong emerged as a substantial shareholder in PJD last November, with a 21.31% stake which he got from his brother Wong Ah Chiew. The move fuelled speculation that there would be a corporate exercise between PJD and the OSK group.
Ong has a direct and indirect stake of 76.52% in OSK Property, and a 41.08% stake in OSK Holdings.
PJD fell 2 sen to RM1.76 as at 2:53pm today, while OSK Property fell 1 sen to RM2.26 and OSK Holdings fell 4 sen to RM2.10.