IOI Corp/IOI Prop ... Mar 09

Retail minority shareholders of IOI Properties Bhd are holding out for a better offer price in the proposed privatisation of the company. The retail minority shareholders had expressed the following concerns.

One, they expect a better offer price. Retail minority shareholders prefer to hold out and not accept the voluntary takeover offer (VTO) unless they are given a better offer price. And second, they believe the offer should come in one preferred option, to be fully satisfied in cash.

These investors had originally wanted to invest in the property sector. The swapping of IOI Prop shares for IOI Corp shares would inevitably expose them to the plantation industry which is now facing a downturn.

IOI Corp had offered to buy the remaining shares it does not own in IOI Prop for RM519mil, through an offer of 33 sen in cash and 0.6 IOI Corp shares at an issue price of RM3.78 each for the remaining stock.

The proposal by IOI Corp to take its property arm private values IOI Prop at RM2.598 a share. However, the investors view the offer was below IOI Prop’s revised net tangible value.

Meanwhile IOI Corp Bhd has no intention to revise the offer price to buy out minority shareholders of IOI Properties Bhd, made in early February 2009. It is also sticking to plans to delist the property arm. IOI Prop’s minority shareholders are holding out for a better deal from IOI Corp.

Retail minority shareholders of IOI Properties Bhd are holding out for a better offer price in the proposed privatisation of the company. The retail minority shareholders had expressed the following concerns.

IOICORP is buying back their share agressive lately:-
Date Stock Shares Acquired (Cancelled) Min Price Max Price Total Shares In
20 Mar 2009 IOICORP 2,447,300 3.720 3.780 265,508,500
17 Mar 2009 IOICORP 968,200 3.740 3.740 263,061,200
16 Mar 2009 IOICORP 3,387,600 3.740 3.740 262,093,000