If you compare the offer price of RM1.50 to the Net Book Value of RM2.34, you are angry with the offer price.
However, the actual net book value (adjusting the land, properties and hotels to the current value) is RM4.60 per share. OSKH is offering RM1.50 for share worth RM4.60. You will be extremely mad.
I agree with RVI123 that the value of PJD is recognised to be much much higher than the offer price.
Remember that OSKH booked an extraordinary gain of some hundreds of millions in its account after completing the last round of take-over. This extraordinary gain is concrete proof that PJD minority shareholders were virtually robbed.
After consolidating the last round acquisition (of PJD and OSKP), OSKH booked a NEGATIVE GOODWILL of RM363 MILLIONS in its 3Q report for financial year end 2015.
If we check internet for definition of Negative Goodwill:
Negative goodwill is a gain occurring when the price paid for an acquisition is less than the fair value of its net tangible assets. Negative goodwill implies a bargain purchase. Negative goodwill may be listed as a separate line item on the acquiring company's balance sheet and may be considered income.
Definition: Negative goodwill is the difference between the price an acquirer pays for an acquiree and the fair market value of the acquiree's assets, when the fair market value exceeds the price paid. When negative goodwill exists, a bargain purchase has been made that favors the buyer. This situation typically arises when there is a distressed sale, such as when a business is in bankruptcy.
FAIRnREASONABLE, did they give a breakdown of the negative goodwill? I am quite sure Damansara Jaya Atria Mall represent a big portion of the negative goodwill.
This is bullshit. 1.50 is even lower than the previous price 1.56. Can't SC and bursa reevaluate the company? How can they cheat and eat the public shareholder's money by force.
I have experienced this as well. Many of my comments just can not go through for the last few days. blocked by i3. Why i3 does not allow comments to go through? What is the reason behind?
I face the same thing. If fact, I complained a few times already on this page. Check back my comments. Important comments just can not sent through many times. Only happened on PJDev page.
I think if a shareholder refuses to sell, then he/she will end up holding a share that will not be able to trade publicly anymore. What a classic makan by Ong!!! No choice but to sell it.....
better take note of the announcements, the thing is minority shareholders are not familiar with the rules and regulations, just make sure don't get stuck and at the end force to sell
bone, judging from the shares/warrants bought by interested party, it is not true that all minority let go their shares at this offer. Volumes very low now. Don't think can get 90% (outstanding).
From the day they announced their intention until today, they have accumulated abt 20% of shares not owned by them. They need to get 90%. Don't think they can achieve.
RVI123... What did u mean u dun think they can achieve 90%? OSK already got 90% of PJDEV shares since many days ago and already clearly stated PJDEV will be delisted as according to bursa rules, >90% means delist
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?
This exercise reflects OSK's desire to take PJD private and to merge (completely) PJD's compatible business units with other similar OSK's unit, properties being the major sector of course. Some PJD's non-core business units may be sold off, I guess.
However, to have totally free hands to restructure and merge PJD business units within OSK, OSK needs a 100% ownership of PJD. If even 2% minority in PJd, their interest in unlisted PJD must still be accounted for.
To exercise compulsory acquisition, OSK must first be able to acquire 90% of the OUTSTANDING shares not own by them at the time of launching the take-over, i.e. 90% of 10% (the remaining). Judging from the low daily transaction, OSK is not likely to achieve the goal of exercising compulsory acquisition.
PJd will be delisted as announced. But it is likely for OSK to revise the offer to buy out those who hold up. For a small sum, it is best for OSK to buy out the rest.
There is room for improvement in the offer prices which currently are unfair and unreasonable. The warrants have 4 years plus to mature, yet not offer any premium at all.
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?
I need your professional advice.What happens if I just keep quiet? Meaning I do not take any action, neither selling in the market nor sending the forms to OSK. Is there a possibility I will lose out in case it is delisted? I was wondering why my remiser called me to sell the shares. I am hoping they will give a better offer later. Thank you.
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RVI123
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Posted by RVI123 > 2016-09-02 23:38 | Report Abuse
I hv been trying to send some information. Tried many times but can not go through. Very funny.