29 May 2012
OSK Holdings will maintain its listed status after the merger with RHB and look for other businesses - founder and major shareholder Ong Leong Huat
(OSK closing stock price yesterday (28.5.2012) was RM 1.74)
OSK Holdings Bhd plans to maintain its listed status and look for other businesses to embark on once it sells off its investment bank, its founder says.
The group will be without a core business once it sells off OSK Investment Bank Bhd to RHB Capital Bhd (RHBCap), which leaves it at risk of becoming a Prcatice Note 17 (PN17) company.
Still, founder and major shareholder Ong Leong Huat, 67, points out that the group will still have some other businesses remaining like property, property-management and money-lending.
"Along the way, my board and I - which also comprise a lot of good business people - will look at what other businesses we can embark on.
"Today, the (investment banking) deal is not fully completed, (so) we can't tell you what we are going to do next. As a businessman, if you have the resources, definitely you'll know what to do," Ong told reporters after the group inked a conditional share purchase agreement with RHBCap here yesterday.
The veteran stockbroker, which has a 32.1 per cent stake in OSK Holdings, is ranked the 30th richest person in Malaysia by Forbes, with a net worth of US$265 million (RM832 million).
According to a source, the group is looking to develop land next to its headquarters in Jalan Ampang here.
OSK Holdings is selling OSK Investment to RHBCap for RM1.95 billion and will be paid for it with 245 million new RHBCap shares and RM147.5 million in cash. The deal is expected to be completed in the final quarter.
"It is the intention of OSK Holdings to maintain the listing status... and apply to Bursa Securities for a waiver from being classified as an affected listed issuer pursuant to PN17 of the listing requirements," OSK Holdings said in a stock exchange filing yesterday.
Ong built up the group into a regional business with a revenue of over RM1 billion since taking it over in 1982. It now has about 80-90 outfits across eight countries.
"This (investment banking) is a very volatile business. The market can enter into a tsunami at any time, any moment... just look at how many such turbulences have occured in the last 10 years," he remarked.
OSK Holding's shares, which have shed 2.2 per cent so far this year, lagging the FBM KLCI's 1.6 per cent gain, closed four sen higher to RM1.74 at noon yesterday before they were suspended pending the announcement.