PacificMas Bhd emerged as the top gainer on Bursa Malaysia yesterday following an offer by its controlling shareholder, Oversea-Chinese Banking Corp Ltd (OCBC), to acquire five subsidiaries.
At yesterday’s close, PacificMas shares surged 10.74% or 33 sen to RM3.40, with 495,300 shares traded.
The broader market, however, slumped in the wake of Wall Street’s decline with the FBM KLCI falling 25.4 points or 1.73% to 1,439.94.
PacificMas’ steepest gain in five months came after OCBC’s wholly-owned subsidiary, OCBC Capital (M) Sdn Bhd, on Monday offered to acquire five PacificMas subsidiaries for an aggregate consideration of RM450 million. OCBC owns a 63.5% stake in PacificMas.
In a separate announcement yesterday, PacificMas revealed that it had remaining assets of RM138.7 million as at Sept 30, which OCBC Capital is not proposing to acquire.
PacificMas said the remaining assets include available for sale securities of RM87.26 million, RM42.26 million due from subsidiaries, RM3.15 million investment in PacificMas Asset Management Sdn Bhd, RM35,000 in cash and bank balances as well as deposits with financial institutions totaling RM497,000.
OCBC Capital’s offer for the five subsidiaries translates to a sale consideration per share of RM2.63, which works out to a 13.85% premium over PacificMas net asset value per share of RM2.31 as at Sept 30.
Taken together, OCBC Capital’s offer and the value of PacificMas’ remaining assets totals RM588.7 million or RM3.44 per share which the market appears to have priced in.
To recap, OCBC Capital has offered to acquire PacificMas’ entire equity interest in four wholly-owned subsidiaries — Pac Lease Bhd, PB Pacific Sdn Bhd, PacificMas Fidelity Sdn Bhd and PacificMas Capital Sdn Bhd — and 85%-owned unit, Pacific Mutual Fund Bhd.
Under the RM450 million deal, the aggregate purchase consideration is to be satisfied via RM164.23 million cash and a deferred sum of RM285.76 million as an amount due and owing by OCBC Capital to PacificMas.
In its announcement on Monday, PacificMas said OCBC Capital has proposed that the former liquidate all its remaining residual assets and settle all the outstanding debts or liabilities, including expenses relating to the deal.
Following that, PacificMas is to distribute its remaining cash via the declaration of a special dividend and/or implement a capital repayment exercise to entitled PacificMas shareholders.
Additionally, PacificMas said OCBC Capital will authorise it to apply the cash entitlement of OCBC Capital under the proposed distributions to offset against the deferred amount and distribute the balance, if any, to OCBC Capital in cash.
According to PacificMas, OCBC Capital’s offer will remain open until Nov 4, unless OCBC Capital agrees in writing to an extension.
The shares of Leader Universal Holdings Bhd, meanwhile, clocked in their steepest gains to date yesterday, rising 17.36% or 14.5 sen to 98 sen with 24.52 million shares traded. It was the fourth top gainer on the local bourse yesterday.
This follows an offer on Monday from its substantial shareholder, HNG Capital Sdn Bhd, to acquire the group’s entire business and undertakings including all assets and liabilities for RM480.1 million or RM1.10 per share.
HNG Capital is a vehicle controlled by the H’ng family, who owns 14.41% equity interest in Leader, a firm primarily involved in the manufacturing of wire and cables for the telecommunications and power industry.
Written by Chua Sue-Ann, theedgemalaysia.com
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