KUALA LUMPUR (Sept 11): OSK Holdings Bhd, which wants to take OSK Property Holdings Bhd (OSKP) private, is extending the closing date for its general offer to Oct 9 from next Tuesday (Sept 15), giving minority shareholders an additional four weeks to make up their minds.
It had earlier extended the closing date from Sept 1 to Sept 15. This second extension sparks speculation that OSK Holdings could be concerned about the acceptance of its takeover bid for OSKP shares at RM1.95 per share, and warrants at RM1 per unit.
According to its filing to Bursa Malaysia, OSK Holdings has garnered 137.08 million shares so far in its takeover offer as at Sept 11. This raises OSK Holdings’ shareholding in OSKP to 96.18%, representing 315.2 million shares.
It is understood that OSK Holdings needs an additional 2% or 6.55 million shares to hit the 90% acceptance threshold to trigger a compulsory acquisition.
Both companies are controlled by tycoon Tan Sri Ong Leong Huat. The takeover exercise, which also involves a general offer for all shares in PJ Development Bhd, is for the seasoned stockbroker to consolidate the property business into the OSK group.
The offer for PJ Development has closed on Monday (Sept 7). OSK Holdings's shareholding has risen to 89.4% after the takeover bid.
For share acceptance, minorities can opt for either full cash payment or OSK Holdings shares at the issue price of RM1.95. OSK Holding’s shares closed at RM1.63 today.
(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)