KUALA LUMPUR (Sept 10): OSK Holdings Bhd (OSKH) said it has successfully completed the takeover of PJ Development Holdings Bhd (PJD), with a 89.4% majority stake in the latter at the close of the offer period on Monday (Sept 7).

“OSKH had successfully completed the takeover of PJD, with an 89.4% interest in PJD at the close of the offer period, and is now a majority shareholder of PJD.

“As stated in the OSKH’s offer document to the shareholders of PJD dated Aug 10, 2015, it is the intention of OSKH to maintain the listing status of PJD,” said the spokesperson in a statement today.

The statement clarifies the perception that OSKH wanted to take PJD private through the takeover bid at RM1.56 per share.

It was previously reported that OSKH had plans to privatise PJD and that its proposed takeover of PJD had fallen through, as it fell short of the 90% required to privatise the company at the close of the offer period.

The spokesperson added that since PJD’s public shareholding spread is now below the minimum requirement of 25% of its total listed shares, PJD will be seeking approval from Bursa Malaysia to grant the company time to meet the requirement.

OSKH will now focus on completing its corporate exercise, which includes the takeover of OSK Property Holdings Bhd (OSKP).

To recap, the rationale for the acquisition of PJD and OSKP was to enable the enlarged OSKH group to possibly consolidate the property development businesses of both PJD and OSKP with OSKH, which may lead to greater economies of scale and create cost synergistic benefits.

As at Sept 8, OSKH has acquired 95.5% of OSKP and is on the brink of the compulsory acquisition threshold.

“As a result, the shares of OSKP will be suspended from trading on Bursa Malaysia on Oct 22, 2015 as its public shareholding is less than 10% of its total shares, pursuant to the Main Market Listing Requirements of Bursa Malaysia.

“The extended offer period for OSKP will end on Sept 15, 2015, unless OSKH decides to extend the offer period further. We will now focus on the OSKP takeover offer,” said the spokesperson.

PJD’s share price dropped three sen to RM1.50, with 26,800 shares traded and a market capitalisation of RM792.65 million.

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