For the past one two weeks, I guess everyone who pay attention to PJDev's announcement in Bursa website probably has no difficulty to note that OSK Holdings Berhad had keep on acquiring PJDev shares through open market.
From the first transfer of shares on 23-July, Tan Sri Ong Keong Huat had acquired PJDev shares through open market almost non-stop until today.
The transacted price was around RM1.55, slightly lower than the offer price.
Up to date, the number of shares acquired by OSK Holdings Berhad through open market is 31.46 million shares.
His ownership in PJDev now is around 38.52% from 31.59%.
With average transacted price of RM1.55, total purchasing cost is RM48.76 million.
So, what is his plan?
To make it as OSK Holdings's subsidiary instead of investment in associate?
In order to have at least 50.01%, OSK Holdings need 11.49% ownership more.
That's equivalent to around RM80.77 million more.
But do not forget PJDev at the latest quarter had RM150million cash on hands, RM253million property development costs and RM557million of land held for property development as well as RM600 million unbilled sales in hands.
Though they have around RM520 million in borrowings.
Though they have around RM520 million in borrowings.
So, another good asset being steal away?
Can offer better price or not?
Or investors should directly buy OSK Holdings?
Interesting ..
Let's see what is the outcome when the mandatory takeover offer end in few weeks time.
OSK need not acquire more than 50% plus 1 share to make PJDEV its subsidiary. PJDEV is already OSK's subsidiary as announced by OSK...
ReplyDeleteI thought normally in accounting terms, any ownership less than 50% is considered as associate.
DeleteUnless the owner exhibits significant influence on its associate then will considered as subsidiary.
Correct me if I wrong
thank for sharing：）
ReplyDelete