There is for sure another extension as allowed by the Takeover Act.

I am not so worried about being a minority shareholder of PJDev after it is delisted. OLH may be a tough negotiator. However, as you can see, everything he do is following the Company Act and business laws. Even though it is unlisted, every related party transaction in future will be revalued by professional valuer. Nothing much to worry about.

He has offered a low price for PJDev but this is permissible by the laws. It is up to the minority shareholders to decide whether they want to accept the offer or not. If they think that the offer is unreasonable, they can reject the offer.

There is for sure another extension as allowed by the Takeover Act.

I am not so worried about being a minority shareholder of PJDev after it is delisted. OLH may be a tough negotiator. However, as you can see, everything he do is following the Company Act and business laws. Even though it is unlisted, every related party transaction in future will be revalued by professional valuer. Nothing much to worry about.

He has offered a low price for PJDev but this is permissible by the laws. It is up to the minority shareholders to decide whether they want to accept the offer or not. If they think that the offer is unreasonable, they can reject the offer.

Under the Company Act n the companies owned M&A, any "Berhad" even tough it is unlisted will have to inform all the shareholders to attend the AGM, EGM and about any other major events or transactions. You are still an owner by the company even tough small, so they hv to inform you. There are still auditors who will audit the accounts every year. Furthermore, PJDev a subsidiary of a listed company (OSK Holdings). The quality of the audit is as thorough as OSk Holdings. PJDev still have loans with the banks, the auditor also has to be responsible to the banks and make sure that nothing go wrong.

We must know the difference between good company and bad company. If the company is delisted because of doing badly (near to bankrupt), then you may not get anything. There were many companies which had been delisted due to bad performance.

Having shares of a delisted public company (like PJ Dev) is like having shares in unlisted Sime Property. It is a subsidiary of a listed entity, Sime Darby. Sime Property is a strong company and it is a major profit contributor to Sime Darby. Sime Darby ensures that Sime Property is doing well and growing because Sime Darby's performance partly depends on the performance of Sime Property. Sime Darby also hope to get dividends from Sime Property like the minority shareholders.

pillay 15, thks for the valuable information on your experience in Saujana. It helps many in deciding to continue to keep the shares even though it will be delisted.

It is true that the company has to wait for another 6 months to raise a fresh offer.

The properties of the company are still valued in the account at the historical cost when the properties were purchased.

MIDF should not use the word RNAV. It is wrong and misleading. RNAV is the net book value adjusted to the current market valuation of the properties owned by the company.

What MIDF gave was

Net Book Value Per Share Based On 2015 Audited Account And Adjusted To The Conversion Of Warrants Outstanding.

FnR, you are right. MIDF's advise is misleading and wrong.

My previous comment.
------------------------------------------------------------------------------
MIDF has taken an easy way out.

The gave the RNAV value of PJDev at RM2.09. They used the 2015 audited account Net Asset figure (Independent Advice Circular To Shareholders, Pg 29) to calculate the RNAV.

pillay 15, thks for the valuable information on your experience in Saujana. It helps many in deciding to continue to keep the shares even though it will be delisted.

It is true that the company has to wait for another 6 months to raise a fresh offer.

The properties of the company are still valued in the account at the historical cost when the properties were purchased.

MIDF should not use the word RNAV. It is wrong and misleading. RNAV is the net book value adjusted to the current market valuation of the properties owned by the company.

What MIDF gave was

Net Book Value Per Share Based On 2015 Audited Account And Adjusted To The Conversion Of Warrants Outstanding.

FnR, you are right. MIDF's advise is misleading and wrong.

My previous comment.
------------------------------------------------------------------------------
MIDF has taken an easy way out.

The gave the RNAV value of PJDev at RM2.09. They used the 2015 audited account Net Asset figure (Independent Advice Circular To Shareholders, Pg 29) to calculate the RNAV.

Just don't know why Guocoland is not launching apartments in Emerald West? Guocoland can launch smaller size apartments, may be 850 sq ft - 1,000 sq ft. If they can sell them at RM400/sq ft, the selling price will be from RM340,000 to RM400,000. I believe they can sell well if they launch this type of apartments. Furthermore, they can still make very good profit at RM400/sq ft.

Guocoland is less sensitive to the market as compared to Ecoworld. Ecoworld is launching apartments in Eco Sanctuary in Kota Kemuning and Eco Majestic in Semenyih apart from landed properties. Mah Sing is also launching apartments in Southville City. This is the type of products that can still sell especially for the first time home buyers. Very sad to look at Emerald West. Good location but launching wrong products. They launched zero lot bungalow but the sales is slow. They hv not launched any new products there for the last 3 years other than the zero lot bungalows.

There are still a few hundred acres of undeveloped land there. If 100 acres are used to develop this type of apartments or condominiums, Guocoland can build 10,000 apartments with GDV of RM4bil. Probably, the company can make RM800mil to RM1bil net profit from this 100 acres.

At RM400/sq ft, the buyers are still from the middle class and it will not bring down the living quality and environment of the community. The community will still be very pleasant to live in.

On the Saujana Consolidated Berhad case, it has been commented by one of i3 user in this blog that he was paid three times the original offer price for his shares. The following is the comment from Pillay 15. You can trace back his comment.

--------------------------------------------------------------------------------------------------------------

pillay15 : Thank to RV1123 and enid888. Gives me hope to just keep the shares. It may turn out to be like Saujana.. Delisted but after a few years they gave 200% extra from the original offer price.

22/09/2016 18:19

Thanks FnR for the information on Goodwood Park.

It has also happened a few times in Malaysia where the major shareholder was unable to acquire 100% of the shares and the companies were delisted.

At least on 2 occasions, the delisted companies were in that situation and eventually the major shareholder offered very high price to the remaining shareholders and bought over their shareholdings.

1. Pantai Holdings Berhad
2. Saujana consolidated Berhad

My RNAV estimation of RM4.60 is not very far from the actual value.

On the Saujana Consolidated Berhad case, it has been commented by one of i3 user in this blog that he was paid three times the original offer price for his shares. The following is the comment from Pillay 15. You can trace back his comment.

-----------------------------------------------------------------------------------------------------------------------------------

pillay15 : Thank to RV1123 and enid888. Gives me hope to just keep the shares. It may turn out to be like Saujana.. Delisted but after a few years they gave 200% extra from the original offer price.

22/09/2016 18:19

Thanks FnR for the information on Goodwood Park.

It has also happened a few times in Malaysia where the major shareholder was unable to acquire 100% of the shares and the companies were delisted.

At least on 2 occasions, the delisted companies were in that situation and eventually the major shareholder offered very high price to the remaining shareholders and bought over their shareholdings.

1. Pantai Holdings Berhad
2. Saujana consolidated Berhad

My RNAV estimation of RM4.60 is not very far from the actual value.

The first offer dateline has passed. Although the offer is extended, those who still keep the shares are those who have decided to reject the offer at RM1.50. They represent about 50% of the outstanding shareholders for both PJDev and PJDev-WC. That is very high percentage and it reflects the unfairness and unreasonableness of the offer prices.

After today (the first offer dateline), those who do not accept the offer are those who have decided to reject the offer at RM1.50. They represent about 50% of the outstanding shareholders for both PJDev and PJDev-WC. That is very high percentage and it reflects the unfairness and unreasonableness of the offer prices.

FnR, the Atria Mall that worth more than RM500mil was booked at more than RM200mil in OSK Property account before the takeover. The negative goodwill consisted of the revaluation of the mall.

As of 7/10/16 (Fri), OSK n OLH have amassed

94.31% of PJDev. They need 98.9% to trigger compulsory acquisition.

84.95% of PJDev-WC. They need 96.8% to trigger compulsory acquisition.

It is so far away from their target and unlikely for them to be successful. The main reason is due to the extremely unreasonable offer prices. It may also due to many shareholders bought their shareholdings at prices higher than RM1.50 during the run up at end of 2013 (as high as RM2.23). They are reluctant to lelong their shares.

The real value of PJDev is RM4.60, OSK n OLH must offer a more reasonable price for the minority shareholders to accept their general offer.

As of 7/10/16 (Fri), OSK n OLH have amassed

94.31% of PJDev. They need 98.9% to trigger compulsory acquisition.

84.95% of PJDev-WC. They need 96.8% to trigger compulsory acquisition.

It is so far away from their target and unlikely for them to be successful. The main reason is due to the extremely unreasonable offer prices. It may also due to many shareholders bought their shareholdings at prices higher than RM1.50 during the run up at end of 2013 (as high as RM2.23). They are reluctant to lelong their shares.

The real value of PJDev is RM4.60, OSK n OLH must offer a more reasonable price for the minority shareholders to accept their general offer.

I am not selling. For those who intend to sell, you can do that later since the dateline is 25/10/16. OSK may revise if they can not get 90% threshold. Hope that you can get a more reasonable price.

I am not selling. For those who intend to sell, you can do that later since the dateline is 25/10/16. OSK may revise if they can not get 90% threshold. Hope that you can get a more reasonable price.

Anybody know abt the new international school in Klang? Management said the school will start this year.

It is a tussle between OLH n minorities. OLH is using delisting as a weapon to force the minorities to sell cheap to him.

OLH and OSK badly need to own 100% so that they can restructure the company easily and fast without the interference and the process to notify the minorities, voting process and holding EGMs.

Many minorities under the threat of delisting have given up and lelong to OLH n OSK. Selling something worth RM4.60 at RM1.50. Decision is decided by you yourself. It is up to you whether to lelong to him or not. If you don't accept his offer, two things may happened.

1) Seeing that it is unable to achieve 98.9%, OSK may purchase from open market at prices higher than RM1.50 and later announce that they will increase the offer price. Whether he will do that or not will depend on how eager OSK wants to get 100% ownership. Alternatively, OSK may wait and make another offer to the minorities after the delisting. Timing will depend on the Take Over Act.

2) If OSK does not increase the offer price or make another offer after the delisting, then minorities will continue to become the shareholders of PJDev. The minorities will be notified to attend EGMs to vote for the restructuring. Generally, the restructuring will be done fairly because OSK as a listed company will still be governed by the laws and acts. Valuations will still be made by professional valuers to determine the land and property prices. Whether they will relist PJDev or not is unknown.

As of 5.00pm on 6/10/16 (Thursday), OSK has amassed slightly more than 94%. OSK needs at least 98.9%. You make your own decision.

I will continue to hold because I think my shareholding will worth much more than RM1.50 per share basis in one or two years time.

Everyone should be responsible for his / her own trade. KYY may had made a call when the stock was at a low stage and the stock moved upwards after that. Those who went in early were making money. Those who hesitated at the early stage but went in only at the later stage after seeing the stock moved up may lost money when the stock came down. Stock is moving in cycle. After it goes up, it will come down some. Investors should learn not to chase high. If an investor lost money in an investment, he needed to analyse what went wrong and adjusted accordingly. Was it because of not being calm enough, chased high or something else? What KYY said is true,investors hv to learn continuously because those who made money from the market are those who are patient, do their own analysis and not chasing high. KYY has been kind enough to give his views and you have to do your own analysis to decide whether to follow his call or not.

Extended by 2 weeks. It looks like there are many shareholders who reject the unfair offer and prepared to hold on to their shareholdings even though the counter will be delisted. When ppl are prepared to keep their shares with the fact that the counter will be delisted, it means that the offer price is way too low.

RM0.54 now. Any news?

The share price has inched up steadily.

Is it an margin account? In fact, they hv to get your instruction and consent. They hv to discuss with you what you need to do if you do not want to sell.

The Melbourne Southbank project's GDV is RM9bil. Assume an prudent 25% net profit margin, the net profit is RM2.25bil. Divide that to the enlarged shares including the warrants of 670million shares, the net earnings per share (EPS) is RM3.36 / share. Just from this project alone.

MIDF has taken an easy way out.

The gave the RNAV value of PJDev at RM2.09. They used the 2015 audited account Net Asset figure (Independent Advice Circular To Shareholders, Pg 29) to calculate the RNAV. This means that all the lands and properties are not calculated based on the present market values. The 2015 audited account used the purchase price as the valuations of the lands and properties which could had been bought as far as 1980s. The values of the properties have appreciated as high as 700%.

In computation of RNAV, the professional firm will usually revises the lands and properties to the present market values and use the present market values in the balance sheet so that the RNAV is true and fair. It gives the real net asset values per share.

To give you an example, an USJ double storey linked house was RM120,000.00 in 1980s. Today it worth about RM800,000.00. It is wrong to still use RM120,000.00 in the book. .

I don't think there is a resistance from the current board. Looking at the lineup, Executive Deputy Chairman is Terry himself. Chairman is appointed by Terry.There are 2 directors representing Sime Darby who must be friendly party to Terry. 3 other directors are employed by Terry who have no reason to go against him. The rest are independent directors. It does not seem to have board tussle.

I think that Terry and Kerjaya Prospek are friendly parties. Don't think Terry is facing resistance from the board.

I heard some old timer says that in the event the compulsory acquisition can not be achieved, the offerer may contact some shareholders directly to buy over their shares at a agreed price in order to meet the 90% threshold.

U hv to find your own buyer. Everything stays the same other than you can not trade through Bursa. When the company declare dividend and bonus issue, you will still receive your share.

Property may be bad at this time but MKH is in the medium and medium upper market segment. Their products are priced affordably. At this market, there are still genuine buyers buying house for own occupations. The main thing is MKH knows how to launch products to capture the smaller pool of buyers.

MKH has done very well with Hillpark Shah Alam North in Puncak Alam. Since its debut in 2013, about 65% of the 550 acres township has been launched. You don't see this very often in Klang Valley. With now more developers flocking into the area, it will be good for everybody as they are building up and elevate the whole areas. They can joint force to build the main access road too. MKH, Ecoworld, IJM, LBS, KLK and Glomac are already there.

As land cost is cheaper, the developers can market products that are more affordable.

I hope that MKH can get some more land in that area because there is less than 35% land left in Hillpark Shah Alam North for MKH to develop.

@FAIRnREASONABLE, Thanks for the info.

I also think that a sensible director will not go against the law by transferring out assets. They will transfer with the proper procedures and to abide by the relevant laws n acts.

A wrong procedure or acts that are against the act may risk law suit from the shareholders n this will be very damaging.

@FAIRnREASONABLE, Thanks for the info.

I also think that a sensible director will not go against the law by transferring out assets. They will transfer with the proper procedures and to abide by the relevant laws n acts.

A wrong procedure or acts that are against the act may risk law suit from the shareholders n this will be very damaging.

You are welcome, Pillay15.

If u do nothing and the company is delisted, you are still a shareholder of the unlisted public company. Everything they do, they still hv to adhere to the laws i.e. Company's Act 1965 n other relevant acts.

Thanks! FAIRnREASONABLE for your good analysis. I thk OSK will not be able to achieve the compulsory acquisition level. The remaining shareholders are those who refused to sell in the last general offer. They held on because the offer price was too low and it is just a fraction the actual net book value at RM4.60 per share. Now, the offer price is even lower than the previous offer price of RM1.56. Do you think they will sell?

If by the end of the offer exercise, OSK manages to get only 95%, what are the drawbacks that they may face as compared to 100% ownership?

If by the end of the offer exercise, OSK manages to get only 95%, what are the drawbacks that they may face as compared to 100% ownership?

I thk OSK has to get 90% acceptance of the shares not already owned by them (the remaining 10.7%). If they get it, everybody has to sell to them n OSK will own 100% of the company. Can someone confirm if this is correct?

Unconditional general offer are issued out on 20/9/16.