Accept offer, PJ Development shareholders advised

PETALING JAYA: Independent adviser MIDF Amanah Investment Bank Bhd has advised shareholders of PJ Development Holdings Bhd to “accept” the takeover offer by electing share settlement for the offer.
It, however, said warrant holders should “reject” the warrants offer as the 60 sen offer price is at a 45.94% discount to the see-through value based on the revalued net asset value (RNAV) of PJ Development shares.
MIDF, in a circular, said that the RM1.56 offer price represents a 26.07% discount compared with PJ Development’s RNAV of RM2.11 per share. As such, the offer shares via cash settlement is “not fair”.
However, it noted that as the offer is to be satisfied by an option of share exchange, shareholders should consider the relative total value consideration for both OSK Holdings Bhd and PJ Development shares.
The resultant relative values on the ratio of five PJ Development shares for four OSK Holdings shares indicates that shareholders will get higher total value of consideration.
“As such, the offer via share settlement is ‘fair’,” MIDF said.
MIDF Investment is of the view that the offer is “reasonable” based on the monthly trading volume over the free float of PJ Development shares over the past six to 12 months.
OSK Holdings will merge its property arm, OSK Property Holdings Bhd with PJ Development Holdings Bhd and inject it into the group in a RM1.75 billion part cash and share deal.