Friday, December 2, 2011

PNB submits plan to SC over incentives, mgmt rights of S P Setia

KUALA LUMPUR (Dec 2): Permodalan Nasional Bhd, which served a takeover notice on S P Setia in late September, has submitted its proposal to the Securities Commission to work out the management and general conduct of the business of the property group.

S P Setia said in Friday it had received PNB's notice about the proposal to formalise the incentives and management rights relating to the management and general conduct of the business of S P Setia group of companies.

The notice had also stated that three parties -- PNB, S P Setia president and chief executive officer Tan Sri Liew Kee Sin, and S P Setia -- would work out the incentives and management rights. However, this arrangement would be subjected to the Securities Commission's approval.

To recap, PNB had on Sept 28 served a takeover notice on S P Setia after its shareholding reached 33.16% or 590.502 million shares.

PNB offered RM3.90 per share, which based on the last traded price of RM3.50, was a 40 sen premium. PNB also offered to acquire the remaining warrants at 91 sen per warrant. This was 45 sen or 97.8% above the last closing price of 46 sen before the offer was made.

S P Setia subsequently rejected the offer, stating it fundamentally undervalued the company and it then decided to seek a competing offer from other interested parties to make an offer to purchase the company's shares. However, it did not receive any competing offers for the stake in the company.

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