KUALA LUMPUR: Permodalan Nasional Bhd (PNB) defended its conditional takeover offer for S P Setia Bhd at RM3.90 per share as "fair and reasonable".
"We have considered this offer from various angles such as market conditions, the interest of all stakeholders, especially the minority shareholders," said PNB's president and group chief executive Tan Sri Hamad Kama Piah Che Othman in a statement on Thursday, Sept 29.
"We also have the responsibility to continuously seek long-term value for our unitholders. As such we strongly believe that the offer price of RM3.90 is fair and reasonable."
PNB stated that the offer price of RM3.90 translates into a P/E of 19.8 times, compared to Kuala Lumpur Property Index's P/E of 9.8 times.
The offer price represents a 21.5% premium over the five-day volume-weighted average price (VWAP) prior to the announcement, PNB said.
To recap, PNB, the single largest shareholder with a 33.17% stake, made a conditional takeover offer to buy all the remaining shares in S P Setia at RM3.90 per share.
S P Setia, however, said it would invite counter bids from other parties as it views the offer by PNB ‘fundamentally undervalues' the developer.
The statement also highlighted that it is PNB's wish to work with the "current management" to deliver value to the shareholders.
"This is a synergistic collaboration that blends the entrepreneurial spirit of S P Setia and PNB's record as a strong and supportive long-term shareholder, which allows the management to have an undivided focus on maximising shareholders' value," said Hamad.
Hamad said the offer is in line with PNB's long-term strategy of enhancing its investment in the property sector.
"We are confident in the prospects of the sector in Malaysia which has strong fundamentals and potential for future growth.
"Having a strategic holding in S P Setia would further strengthen our portfolio, which already has a strong presence in banking, plantation and automotive sectors, among others," he said.
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