SP Setia (HOLD)
Revised takeover offer
§ The CEO, Tan Sri Liew Kee Sin ("TSL") and PNB, are making a joint revised offer for SP Setia Bhd, and have provided much-need clarity on the future of the company.
§ The new offer price has been revised to RM3.95 per share from RM3.90 while the offer for the warrants has been revised to 96 sen per warrant from 91 sen.
§ The most important part of the offer is a 3-year management agreement for TSL to have a free hand in running SP Setia. When asked, TSL also said he does not intend to inject other PNB-related property developers such as Pelangi and I&P into SP Setia. Also, PNB did not impose their KPI on SP Setia.
§ TSL also said that they expect to complete the land acquisitions for Bangsar and Federal Hill shortly.
§ TSL will hold on to his 8% stake, and PNB will provide TSL with a put option to sell his 8% stake to PNB in progressive tranches at RM3.95 per share.
§ Maintain HOLD, and raise target price by 5 sen to RM3.95, which is the revised offer price.
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