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Friday, September 30, 2011

PNB says it’s confident of SP Setia’s management team

KUALA LUMPUR: PermodalanNasional Bhd (PNB) wants to work with the current management of property developer SP Setia Bhd, andcontinue to deliver value to shareholders.

Hamad: ‘We also have the responsibility to continuously seek long term value for our unit holders.’

In a statement, PNB said it hadconfidence in SP Setia's existingmanagement team and reiterated that, as stated in the notice of takeover, it had every intention of retaining the listed status of the company.

“This is a synergistic collaboration that blends the entrepreneurial spirit of SP Setia and PNB's record as a strong and supportive long-term shareholder, which allows the management to have an undivided focus on maximising shareholders' value,” said PNB president and group chief executive Tan Sri Hamad Kama Piah Che Othman.

On Wednesday, PNB offered to acquire SP Setia shares at RM3.90 each and 91 sen per warrant.

The takeover bid by PNB caught the SP Setia board unawares and spread concern through its senior management.

The SP Setia board had responded by saying it was seeking competitive bids because the PNB offer undervalued the company based on external valuations by investment analysts published before the receipt of the offer.

The SP Setia board would also ask PNB to revise its offer upwards.

However, Hamad Kama Piah said the offer price of RM3.90 per share was fair and reasonable.

“We have considered this offer from various angles, such as market conditions amid the interest of all stakeholders especially minority shareholders.

“We also have the responsibility to continuously seek long-term value for our unit holders.”

The statement pointed out that SP Setia fitted into PNB's investment criteria as the group was continuously looking for well-run and fundamentally strong companies, given the substantial funds under its management.

Hamad added that the offer was in line with PNB's long-term strategy of enhancing its investments in the property sector.

“We are confident of the prospects of the sector in Malaysia. Having a strategic holding in SP Setia would further strengthen our portfolio, which already has a strong presence in the banking, plantation and automotive sectors, among others,” he said.

By The Star

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