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JCorp extends closing date of takeover offer for Damansara Holdings to Nov 22

KUALA LUMPUR (Nov 4): Johor Corp Bhd (JCorp), the state-controlled investment arm of Johor, has extended the closing date of its unconditional mandatory take-over offer for Damansara Holdings Bhd from Nov 8 to Nov 22, to allow more time for shareholders to accept its offer, according to a bourse filing on Wednesday.

JCorp currently holds 237.01 million shares or 74.44% of the total issued shares of Damansara Holdings as of Wednesday, falling 15.56% short of the 90% aggregate that allows JCorp to withdraw the listing status of Damansara Holdings. 

On Oct 28, Damansara Holdings board via its independent advisor, Malacca Securities Sdn Bhd had advised shareholders that the 50 sen per share offer, which represents a 25% premium at the time of the offer on Oct 18 is deemed to be fair and reasonable, and that shareholders should accept the offer.

To recap, the take-over for Damansara Holdings began on Sept 14, when JCorp via its special purpose vehicle for the take-over, JLand Sdn Bhd (then known as Absolute Ambient Sdn Bhd), acquired a 49.57% or 157.82 million shares stake in Damansara Holdings for RM78.91 million from Seaview Holdings Sdn Bhd at 50 sen per share.

Subsequently, JCorp via its two other subsidiaries, Sindora Bhd and Kulim (Malaysia) Bhd, made an unconditional mandatory takeover offer to acquire Damansara Holdings on Sept 27, upon acquiring 63.68% stake (which includes the 49.57%, 9.45% and 4.36% stake acquired by Absolute Ambient Sdn Bhd, Sindora Bhd and Kulim (Malaysia) Bhd respectively) in the company.

“JCorp recognises that the Offeree Group’s business is complementary to its existing businesses under its real estate and infrastructure segment. The Acquisition provides an opportunity for the JCorp group of companies to consolidate and expand its capability and footprint of its existing property management and facilities management business,” explained JCorp in the offer document dated Oct 18 on the rationale of the offer.

Damansara Holdings is involved in facility management services for properties, operation of car parks, property development, and project management and consultancy services for the property, healthcare, energy and construction sectors.

At market close on Wednesday, Damansara Holdings closed 0.5% or 1% down at 49.5 sen, giving the company a market capitalisation of RM157.6 million.

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