SP Setia (HOLD)

Revised takeover offer

'''' The CEO, Tan Sri Liew Kee Sin ("TSL") and PNB, are making a joint revised offer for SP Setia Bhd, and have provided much-need clarity on the future of the company.

'''' The new offer price has been revised to RM3.95 per share from RM3.90 while the offer for the warrants has been revised to 96 sen per warrant from 91 sen.

'''' The most important part of the offer is a 3-year management agreement for TSL to have a free hand in running SP Setia.'' When asked, TSL also said he does not intend to inject other PNB-related property developers such as Pelangi and I&P into SP Setia.'' Also, PNB did not impose their KPI on SP Setia.

'''' TSL also said that they expect to complete the land acquisitions for Bangsar and Federal Hill shortly.

'''' TSL will hold on to his 8% stake, and PNB will provide TSL with a put option to sell his 8% stake to PNB in progressive tranches at RM3.95 per share.

'''' Maintain HOLD, and raise target price by 5 sen to RM3.95, which is the revised offer price.