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Pulai Springs to remain listed

KUALA LUMPUR: Swift Redeem Sdn Bhd, major shareholder of Main Market-listed Pulai Springs Bhd, which made a general offer for the shares it does not already own in August, failed in its bid to secure a minimum 90% stake in the company. When the offer closed at 5pm yesterday, it only secured a 80.07% stake or acceptance from 48% of the shareholders.

This means that it will maintain Pulai Springs’ listed status and it has been given until year-end to comply with the public shareholding spread requirement, after being granted an extension by Bursa Malaysia early this month.

Swift Redeem had offered to take over the Johor-based golf course operator at RM1.18 a share, valuing the company at RM123.9 million. The company already had 32% or 33.6 million shares in Pulai Springs. It indicated that it would maintain Pulai Springs’ listed status unless it receives sufficient acceptance to either individually or jointly with its associates hold 90% or more of the company’s shares.

Pulai Springs is a property player with interest in hospitality — the Pulai Springs Resort and Pulai Desaru Beach Resort — its main assets. Swift Redeem’s offer price of RM1.18 would be a 31-month high for the counter. However, it was also at a 7.1% discount to its net assets per share of RM1.27 as at March 31, and a  price-to-book ratio of 0.93 times.

Swift Redeem is controlled by Pulai Springs executive director Mah Siew Chean. According to its annual report, other substantial shareholders are Tan Sri Abu Sahid Mohamed with an 18.12% stake and Singapore-listed PSC Corp Ltd holds a 17.63% stake.

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