BRDB chairman, partners in RM1.5b takeover move

Bandar Raya Developments Bhd (BRDB) chairman and main shareholder Datuk Mohamed Moiz JM Ali Moiz and partners are in the midst of a takeover of the property developer with an indicative offer of RM2.90 a share and RM1.80 a warrant via their holding company Ambang Sehati Sdn Bhd (ASSB).

ASSB currently holds about 18.5% or 92 million shares and 18.4% or 41.4 million warrants in BRDB as of April 24, 2012. At the indicative offer prices, the purchase of the remaining 405.7 million BRDB shares and 184.4 million warrants will cost about RM1.51 billion in total.

The offer price of RM2.90 per share is a 14.6% premium to BRDB’s last traded price of RM2.53 yesterday while the warrant offer price is at a 16.9% premium to its last done price of RM1.54.

In a filing to Bursa Malaysia yesterday, BRDB said ASSB is now in the midst of finalising the financing and necessary approvals for the potential takeover of shares and warrants of BRDB that it does not own.

ASSB is jointly owned by Mohamed Moiz, Abdul Sathar MSM Abdul Kadir, Sascha Saleem Khan and Tania Aishah Khan.

Mohamed Moiz, 51, came into the spotlight of corporate Malaysia in 1999 when he led Effective Capital Sdn Bhd, which made some RM280 million facilitating the migration of the suspended Central Limit Order Book shares from the Central Depository (Pte) Ltd to the local exchange.

This takeover offer comes after ASSB had earlier offered to buy major property assets of BRDB for RM914 million but that failed due to objections raised over the deal’s transparency and offer price.

BRDB owns about 57% of Pahang-based chipboard maker, Mieco Chipboard Bhd. It has commercial and residential projects in Malaysia and Pakistan. The group is also working with Multi-Purpose Holdings Bhd to develop some of the latter’s landbank in the country.