KUALA LUMPUR: PJ Development Holdings Bhd (PJD), which is the target of acquisition by OSK Holdings Bhd, reported a flat year-on-year net profit of RM30.23 million in its first quarter ended September 30 2014, due to an overall muted performance of its property development, construction, building material, cable and hospitality businesses.
In its filing to the stock exchange yesterday, the group said its first quarter revenue climbed five per cent to RM248.47 million, from RM236.13 million previously.
PJD’s 405ha landbank has a gross development value of about RM5 billion.
The company also operates a hospitality business under the Swiss Garden brand name. Swiss Garden International currently owns and operates nine hotels and resorts in Kuala Lumpur, Perak, Pahang, Kedah and Australia. It also has two such assets under management contracts in Penang.
Last month, OSK Holdings proposed to buy OSK Property Holdings Bhd and PJD. The acquisitions are estimated to be worth RM1.2 billion.
OSK proposed to pay RM2 a share for OSK Property and RM1.60 for each PJD share, by issuing new shares and payment in cash.
It was reported that these offer prices translate to unattractive price-to-earnings of 5.46 times historical earnings for OSK Property and 3.2 times for PJD.
Yesterday, some retail investors of PJD, in wanting to show their dissatisfaction over what is seen as a cheap offer, had rejected the re-appointment of Tan Sri Ong Leong Huat as chairman at the shareholders’ meeting. After a vote, however, Ong secured the post by a big majority.
PJD shareholders, who are not satisfied with the RM1.60-a-share offer, actually have a chance to vote on this at a later date.
When met after the shareholders meeting yesterday, Ong said: “Let the process run its due course.
“As an interested party in the proposed merger, it is not for me to comment whether the pricing is too cheap or too high. Let us leave it to the independent advisers to gauge,” he said.
~ By BUSINESS TIMES
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