Tuesday, July 31, 2012

Ambang Sehati To Make A GO for Bandar Raya?

Last year, the major shareholder, Ambang Sehati tried to buy four of Bandar Raya's prime assets. (You can refer to postings Bandar Raya Asset Sale: Yet Another Ludicrous RPT Transaction and And Ambang Sehati Is Rewarded With 73.6 Million From Their Purchase Of BRDB's Prime Assets )  Some had argued that the purchase price was grossly cheap.

That asset purchase failed.

On today's Star Biz, apparently Ambang Sehati is back. Yes, they are back!

Try again if you fail the first time around.

This time Ambang Sehati is rumoured wanting to buy the entire stock.

I guess these prime assets must surely worth heck a lot of money for Ambang Sehati!

Here's the article from Star Biz: http://biz.thestar.com.my/news/story.asp?file=/2012/7/31/business/11761768&sec=business

  • Tuesday July 31, 2012
    GO imminent for Bandar Raya shares at RM2.90 each

    PETALING JAYA: A general offer for property developer Bandar Raya Developments Bhd (BRDB) at RM2.90 per voting share and the corresponding indicative price of RM1.80 per warrant could be in the offing.

    The company told Bursa Malaysia it was informed by its major shareholder, Ambang Sehati Sdn Bhd, that the latter was in the midst of finalising the financing, including procuring the necessary approvals for the funding for a potential takeover offer of voting shares and warrants in BRDB that it did not already own.

    Ambang Sehati, which controls 18.5% in BRDB, is the same party that had previously attempted to take over BRDB via the assets and liabilities route. Ambang Sehati is the private investment vehicle of Datuk Mohamed Moiz Jabir Mohamed Ali Moiz, the chairman of BRDB.

    In September last year, Ambang Sehati proposed to buy BRDB’s properties, namely Bangsar Shopping Centre, Menara BRDB, CapSquare Retail Centre and Permas Jusco Mall for RM914mil. However, the proposal was deemed controversial and drew criticisms from various parties, who expressed concern over the lack of transparency in the deal and the fairness of the offer price, coupled with the fact that it was a related-party transaction.

    The outcry resulted in BRDB subsequently calling off the sale. It instead decided to call for an open tender to take into consideration the interest from credible parties to acquire its assets, and also Ambang Sehati’s intention to increase its stake in the company.

    In March this year, BRDB said it was one step closer to selling off its four prime assets via an open tender, with the appointment of its legal and financial advisers to assist in the deal. It told Bursa Malaysia then that it was working with Lee Hishammuddin Allen & Gledhill and CIMB Investment Bank Bhd in the proposed disposal.

    But not much progress was made after that.

    BRDB’s share price had been rallying since last week. Yesterday, it rose two sen to close at RM2.53. That was up from RM2.35 a week ago.

    BRDB said the current offer price from Ambang Sehati at RM2.90 per share was based on the estimated diluted net tangible assets per share in BRDB.

    Some said the offer price of RM2.90 per share, which represented a premium of 14.6% from yesterday’s closing price of BRDB, was attractive compared to the earlier assets and liability offer whereby the indications were that shareholders were only going to be paid a special dividend of 80 sen per share.

    It should be noted that in the previous deal, BRDB would still be left with other assets although many had argued that the assets Ambang Sehati was looking to buy then were the prized assets of the company.

    Should the curent deal go through, shareholders will have the option of totally exiting BRDB at RM2.90 per share.