By Sharen Kaur
sharen@mediaprima.com.my
Published in NST on June 27, 2013
sharen@mediaprima.com.my
Published in NST on June 27, 2013
ROOM FOR NEGOTIATIONS: Company will sell stake in PJ Sentral Devt to Nusa Gapurna if the price is right, says source
PKNS Holdings Sdn Bhd is willing to sell its stake in PJ Sentral Development Sdn Bhd (PJSD) to Nusa Gapurna Development Sdn Bhd (NGD) if the price is right, settling their dispute out of court.
"Although PKNS has filed the case in the court, there is still room for negotiations between the PJSD shareholders. PKNS has not put a stop to anything. It is willing to settle out of court provided it gets a fair value for its share in PJSD," said an industry source.
PKNS officials declined to comment when contacted by Business Times. PKNS Holdings is a wholly-owned subsidiary of PKNS, the Selangor state development corporation.
PJSD is a 70:30 joint venture company between NGD and PKNS Holdings. NGD is in turn 60 per cent owned by Gapurna Sdn Bhd (GSB) , and 40 per cent by the Employees Provident Fund (EPF).
The company is developing PJ Sentral on a 4ha site in Petaling Jaya, Selangor.
The source said property experts value PJ Sentral at more than RM300 million. This means that PKNS' 30 per cent share in the project should be worth slightly more than RM100 million.
The estimated gross development value for the project comprising mainly office towers is about RM3 billion.
Both PKNS and NGD are now in a battle for PJ Sentral.
NGD had entered into a share sale agreement (SSA) with Malaysian Resources Corp Bhd (MRCB), which is 42.2 per cent owned by EPF, to sell some of its assets including PJSD, for RM814 million.
However, it was claimed that NGD did not obtain prior consent from PKNS to sell PJSD. PKNS argued that by entering into an SSA with MRCB, NGD had triggered PKNS' pre-emption rights with respect to the former's shares held in PJSD under the shareholders' agreement between NGD, PKNS and PJSD.
NGD offered PKNS around RM86 million to buy the latter's 30 per cent stake in PJSD but PKNS rejected.
It is understood that PKNS made a counter offer to buy NDG's 70 per cent share in PJSD for RM220 million but this was rejected by the company.
PKNS filed a suit last Wednesday to block PJSD's sale to MRCB on grounds that NGD had breached a shareholders' agreement between the two companies.
GSB director Mohd Imran Mohamad Salim told Business Times last week that NGD expects the deal with MRCB to conclude in the next three to six months.
"This would depend on what the lawyer says and how they want to pursue the matter with PKNS," said Imran, who is also MRCB's group chief operating officer.
"Although PKNS has filed the case in the court, there is still room for negotiations between the PJSD shareholders. PKNS has not put a stop to anything. It is willing to settle out of court provided it gets a fair value for its share in PJSD," said an industry source.
PKNS officials declined to comment when contacted by Business Times. PKNS Holdings is a wholly-owned subsidiary of PKNS, the Selangor state development corporation.
PJSD is a 70:30 joint venture company between NGD and PKNS Holdings. NGD is in turn 60 per cent owned by Gapurna Sdn Bhd (GSB) , and 40 per cent by the Employees Provident Fund (EPF).
The source said property experts value PJ Sentral at more than RM300 million. This means that PKNS' 30 per cent share in the project should be worth slightly more than RM100 million.
The estimated gross development value for the project comprising mainly office towers is about RM3 billion.
Both PKNS and NGD are now in a battle for PJ Sentral.
NGD had entered into a share sale agreement (SSA) with Malaysian Resources Corp Bhd (MRCB), which is 42.2 per cent owned by EPF, to sell some of its assets including PJSD, for RM814 million.
However, it was claimed that NGD did not obtain prior consent from PKNS to sell PJSD. PKNS argued that by entering into an SSA with MRCB, NGD had triggered PKNS' pre-emption rights with respect to the former's shares held in PJSD under the shareholders' agreement between NGD, PKNS and PJSD.
NGD offered PKNS around RM86 million to buy the latter's 30 per cent stake in PJSD but PKNS rejected.
It is understood that PKNS made a counter offer to buy NDG's 70 per cent share in PJSD for RM220 million but this was rejected by the company.
PKNS filed a suit last Wednesday to block PJSD's sale to MRCB on grounds that NGD had breached a shareholders' agreement between the two companies.
GSB director Mohd Imran Mohamad Salim told Business Times last week that NGD expects the deal with MRCB to conclude in the next three to six months.
"This would depend on what the lawyer says and how they want to pursue the matter with PKNS," said Imran, who is also MRCB's group chief operating officer.
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