KUALA LUMPUR: The largest shareholder of PULAI SPRINGS BHD [] has launched a takeover of the company by offering RM1.18 cash per share, which is 31.11% over the five-day volume weighted average price (VWAP) of 90 sen.
Pulai Springs said on Monday, Aug 1 that it had received the notice of conditional take-over offer from Swift Redeem Sdn Bhd, which owns 32%.
'The board will deliberate on the offer and will announce subsequently if it intends to seek an alternate person to make a take-over offer for the offer shares,' the Johor-based golf course operator said.
At the offer price of RM1.18 cash, this is 28 sen above the VWAP of 90 sen up to July 28.
The takeover offer confirmed The Edge FinancialDaily report on July 29 about the privatisation exercise which could be the fact that Pulai Springs' assets are undervalued.
Swift Redeem surfaced as a major shareholder on July 25 after it bought over the 32% equity stake in Pulai Springs from Sepenah Emas (M) Sdn Bhd, which ceased to be the substantial shareholder after the divestment. The block of shares was transacted at 80 sen per share.
Interestingly, both Swift Redeem and Sepenah Emas are related to its executive director Mah Siew Chean. Sepenah Emas is the vehicle of Mah while Swift Redeem is controlled by Mah and Christopher Mah Siew Houk.
Pulai Springs' share price had rallied recently. The hardly-traded counter surged to a high of 90 sen before it was suspended from trading. Prior to the surge, the stock was trading below 50 sen.
Apparently, Pulai Springs has assets worth about RM119.7 million that have not been valued since 2000. And those assets are believed to have appreciated in recent years. Its net asset per share was RM1.27 as at March 31.
The company's main asset is Pulai Springs, an 18-hole golf course and resort in Johor. Its latest annual report shows that the asset was valued at about RM97.4 million as at May 2000, compared with the company's market capitalisation of about RM97 million. Pulai Springs also owns another plot of land and a building in Kota Tinggi, valued at RM22.28 million.
For its 1QFY11 ended March 31, Pulai Springs incurred a net loss of RM2.11 million on revenue of RM9.8 million.
The other substantial shareholders are Tan Sri Abu Sahid Mohamed with 18.12% and Singapore-listed PSC Corp Ltd with a 17.63% stake.
Pulai Springs said on Monday, Aug 1 that it had received the notice of conditional take-over offer from Swift Redeem Sdn Bhd, which owns 32%.
'The board will deliberate on the offer and will announce subsequently if it intends to seek an alternate person to make a take-over offer for the offer shares,' the Johor-based golf course operator said.
At the offer price of RM1.18 cash, this is 28 sen above the VWAP of 90 sen up to July 28.
The takeover offer confirmed The Edge FinancialDaily report on July 29 about the privatisation exercise which could be the fact that Pulai Springs' assets are undervalued.
Swift Redeem surfaced as a major shareholder on July 25 after it bought over the 32% equity stake in Pulai Springs from Sepenah Emas (M) Sdn Bhd, which ceased to be the substantial shareholder after the divestment. The block of shares was transacted at 80 sen per share.
Interestingly, both Swift Redeem and Sepenah Emas are related to its executive director Mah Siew Chean. Sepenah Emas is the vehicle of Mah while Swift Redeem is controlled by Mah and Christopher Mah Siew Houk.
Pulai Springs' share price had rallied recently. The hardly-traded counter surged to a high of 90 sen before it was suspended from trading. Prior to the surge, the stock was trading below 50 sen.
Apparently, Pulai Springs has assets worth about RM119.7 million that have not been valued since 2000. And those assets are believed to have appreciated in recent years. Its net asset per share was RM1.27 as at March 31.
The company's main asset is Pulai Springs, an 18-hole golf course and resort in Johor. Its latest annual report shows that the asset was valued at about RM97.4 million as at May 2000, compared with the company's market capitalisation of about RM97 million. Pulai Springs also owns another plot of land and a building in Kota Tinggi, valued at RM22.28 million.
For its 1QFY11 ended March 31, Pulai Springs incurred a net loss of RM2.11 million on revenue of RM9.8 million.
The other substantial shareholders are Tan Sri Abu Sahid Mohamed with 18.12% and Singapore-listed PSC Corp Ltd with a 17.63% stake.
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