OSK Property, PJ Development in focus amid merger indications

KUALA LUMPUR (Oct 10): Share prices of OSK Property Holdings Bhd and PJ Development Holdings Bhd (PJD) advanced as much as 4.3% and 3.4% respectively in morning trade, following reports veteran stockbroker Tan Sri Ong Leong Huat plans to merge the two property firms soon.

At midday break, OSK Property was up 9 sen or 3.8% at RM2.44, after trading between RM2.34 and RM2.45. It was the seventh top gainer on Bursa Malaysia, but volume was a modest 129,000 shares.

Its warrants, dubbed OSKPROP-WC, went up 5 sen or 3.7% to RM1.41. It is also among the top gainers of the morning.

PJD saw some investors taking profit this morning, after shooting up to an intraday high of RM1.85.

It declined 1 sen to settle at RM1.78 at the midday break, with 1.92 million shares done.

However, its warrants, PJDEV-WC, rose 2.5 sen or 2.9% to 90 sen.

Yesterday, Ong, who is the common major shareholder of PJD and OSK Property, said the consolidation of the two firms will create the country’s first-tier property group with stronger financial muscle and higher efficiency, besides attracting top talent.

“We have that in mind. I think it will be quite soon. You will hear from me,” he told a press conference, after PJD’s extraordinary general meeting yesterday.

“If you have two companies doing the same thing, and when you consolidate them into a bigger one, you can do better things and deliver better results,” said Ong, who is group managing director of OSK Property and non-executive chairman of PJD.

He emerged as a substantial shareholder of PJD in November 2013 with a 21.31% stake, taking the place of older brother Wong Ah Chiew. He also controls 71.65% of OSK Property.

Meanwhile, Ong also said PJD is expected to see a profit growth of 20% in the financial year ending June 30, 2015, up from RM224 million in the previous financial year.

The growth will be driven by its ongoing projects such as YOU City @ Cheras in Kuala Lumpur, Woodsbury Suites @ Harbour Place in Butterworth, Penang, as well as a serviced apartment project in Sungai Karang, Kuantan, Pahang.