KUALA LUMPUR: OSK Holdings Bhd shareholders approved of the purchase of OSK Property Holdings Bhd and PJ Development Holdings Bhd, for up to RM1.71 billion, of which RM570 million is via share swaps by Tan Sri Ong Leong Huat's stakes in the companies.
OSK Holdings had offered to buy 72.4 per cent in OSK Property for RM346.4 million or RM1.95 per OSK Property share. OSK Holdings will issue 177.64 million new shares at RM1.95 each.
The merger also sees OSK Holdings' buying 31.6 per cent in PJD for RM223.64 million or RM1.56 per share, which will be completed via the issuance of 114.68 million new OSK Holdings shares at an issue price of RM1.95 per share.
"Shareholders unanimously approved of the purchase of my block of shares, OSK Property and PJD," said OSK Holdings group managing director Ong.
"These corporate exercises that facilitate a merger of three companies into one is targeted to be completed by September 2015," he told reporters after the shareholders meeting held here today.
The merger of the three companies will see assets totalling more than RM5 billion.