There is no guarantee the price of offer will be good. For one, OSK not taking PJdev private. Therefore there is no call from the investor. It's a merger much like Eco taking over Focal as an already listed vehicle to speed the the process. Here it is similar except Osk now needs a vehicle for core business as they do not have one. Times are bad for property and they may offer low
If pjdev be the acquirer, its no longer a RM2 share. With potential market cap exceeds 1b after merging. Looking at current assetd they are holding as well as the attrativeness of the new entity. I am holding pjdev till at least mid 15. It will open the exposure to new env as a top tier property developer. Bear in mind that there is still 1b unbilled sales, no worries on next few quarters. Good luck
Even if confirm, they have to thread carefully. A winner may have to show the righ price offer which is fair or whole deal may get negative market feedback
no worries on the merger if you're planning to stay long with the company. A merger entity will be much larger than current size and it will be definitely not a RM2 company anymore after that. It might take some time, but eventually will reach another highest point again. buy with cash and wait for rewards.
haha. what i mean is they confirmed talking to each other. I believe Pjdev will be the acquirer since they are bigger entity than oskprop. however due to high gearing of pjdev, plus they are acquiring land in australia for 432m, it would be wise for them to offer share and some cash. the way i look at the deal, if it materialise, will benefit mr ong since his 75% shares will be converted to pjdev shares. if oskprop were to acquire pjdev, it will be dilutive to oskprop. The valuation is the key. mq ong may value oskprop at higher price to get more shares.
anyway, i do agree pjdev will be bigger, stronger entity post merger. but it need to reduce its debt, otherwise it will become another tropicana.
I have same view with azlan88, it make more sense for PJD to acquire OSKP with shares+cash. Tan Sri OLH will get cash plus increase his holding in PJD.
But, don't forget PJD income is not entirely from property development alone. (although it is the most lucrative one..)
I'm looking at special div + final dividend in coming quarter, 1 question, i remember they declared 2.5cents dividend in recent quarter, but how come still doesnt announce ex-date yet? already 1.5 month? stay long term :)
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
micky92
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Posted by micky92 > 2014-10-10 10:09 | Report Abuse
Haha...the only few ctrs in green