KUALA LUMPUR: Tan Sri Ong Leong Huat has suffered a setback
in his bid to take OSK Holdings Bhd private after his offer was described as
“not fair” and “not reasonable” by the independent adviser for the corporate
exercise.
Affin Investment Bank
Bhd said the offer price for OSK shares is “not fair” as it is below the fair
value of the company.
Affin had based the fair value of OSK shares using the
revised net asset value (RNAV) concept.
OSK is estimated to have a RNAV of between RM1.88 and RM2.15
per share.
The net asset per share of OSK, meanwhile, stands at RM2.57
a share, meaning that the offer price by Ong is based on an implied
priceto-book ratio (PBR) of 0.65 times.
“This is lower than
the lowest unaudited PBR of comparable companies of 1.0 times and also lower
than the average unaudited PBR of comparable companies of 1.57 times,” Affin
said in a statement to OSK shareholders.
To recap, Ong is seeking to take OSK private through OSK
Equity Holdings Sdn Bhd, which after a series of corporate deals, has a stake
in OSK above the 33 per cent cut-off point.
OSK Equity is 99 per cent controlled by Ong, who is also the
managing director of OSK.A party that breaches the 33 per cent cut-off point in
ownership is required by law to make a mandatory offer for the shares it does
not already own.
Read more: OSK takeover offer not fair, says Affin at BTimes
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