OSK Equity and parties in concert held 36.72% stake in OSK Holdings, triggering a takeover offer for the remaining stake, comprising of 612.85 million shares or 63.28%. The offer is scheduled to close at 5pm on Aug 20.
According to the executive summary, based on the RNAV, the offer price of RM1.68 was lower than the estimated RNAV per OSK Holdings shares ranging from RM1.88 to RM2.15.
Hence, the holders of the shares would be foregoing the opportunity to fully realise their investment at the underlying market value of the group’s assets.
Based on the unaudited net asset per share as at March 31 of RM2.57, the offer price represented an implied price to book ratio (PBR) of 0.65 times which was lower than the lowest unaudited PBR of comparable companies of 1.0 times and also lowed than the average unaudited PBR of comparable companies of 1.57 times.
As for the market price, the offer price was at a 2.44% premium to the last trading day on July 8 at RM1.64.
However, the executive summary pointed out the market prices of OSK Holdings shares had been trading between RM1.62 and RM1.72 since the last trading day up to the last practicable date of Aug 5.
The minority shareholders were advised to monitor the market prices of the shares before deciding whether to accept or reject the offer.
Limited time offer:
Just RM5 per month.
