KUALA LUMPUR: The investing fraternity is waiting to see whether OSK Holdings Bhd would be able to garner enough shares through its takeover bid to invoke a compulsory acquisition of OSK Property Holdings Bhd (OSKP) — an exercise for tycoon Tan Sri Ong Leong Huat to consolidate its property business.

OSK Holdings, controlled by Ong, has extended the closing period of its offer to Sept 15 from Sept 1  to obtain a higher acceptance level. As at Sept 8, OSK Holdings has acquired 95.5% of OSKP and its shareholding is on the verge of the compulsory acquisition threshold.

Should things go according to plan, shares of OSKP will be suspended from trading on Bursa Malaysia on Oct 22, said OSK Holdings in a statement yesterday.

To clarify the misconception that OSK Holdings had failed in its move to take PJ Development Bhd (PJD) private, the group said OSK Holdings has “successfully completed” its takeover bid of PJD with an 89.4% stake at the close of the offer period on Sept 7.

“As stated in the OSKH’s offer document to the shareholders of PJD dated Aug 10, 2015, it is the intention of OSKH to maintain the listing status of PJD,” said the spokesman. However, he  added that since PJD’s public shareholding spread is now below the minimum 25%, PJD will be seeking approval from Bursa Malaysia for time to meet the requirement.

OSK Holdings launched its takeover bid for OSKP and PJD at RM1.95 and RM1.56 per share, respectively, to enable the enlarged OSK Holdings group to consolidate the property development businesses of both PJD and OSKP with OSKH, which may lead to greater economies of scale and the benefits of cost synergies.

This article first appeared in digitaledge Daily, on September 11, 2015.