Permodalan or PNB, Malaysia’s largest state asset manager, offered RM3.90 apiece for the rest of the shares it doesn’t already own, Maybank Investment Bank Bhd said in an e-mailed statement today.
The all-cash bid values SP Setia at RM6.9 billion. The stock surged 13 per cent to RM3.50 yesterday, the most since 1998, before being suspended from trading today. The offer represents a premium of 21.5 per cent above SP Setia’s five-day volume-weighted average price of RM3.21, said Maybank, which is acting for PNB.
This compares with an average premium of 34 per cent for 17 property deals of more than US$500 million in Southeast Asia in the past five years, according to data compiled by Bloomberg. “If it’s privatized, it would imply that Permodalan might do some internal consolidation and put all their property assets under one entity,” said Jason Chong, who helps manage about US$1 billion as chief investment officer at Manulife Asset Management (Malaysia) Sdn Bhd in Kuala Lumpur.
They also need to “ensure that core management is still around.” The offer follows PNB’s 2009 merger of three developers after buying them out. Kuala Lumpur-based SP Setia will give PNB, which manages about RM150 billion of assets, access to projects in Malaysia, Australia and Vietnam.
By Bloomberg
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