KUALA LUMPUR: When S P Setia Bhd received the notice of take- over by Permodalan Nasional Bhd (PNB) over a month ago, Wong Chee Kooi was one of the first people the property firm’s chief Tan Sri Liew Kee Sin called. Wong founded the property developer 37 years ago.
Now in his late 60s, Wong established Syarikat Pembinaan Setia Bina Sdn Bhd, which evolved into S P Setia, in 1974. He is an industry veteran and remains active in property development.
Like all other shareholders and employees, Wong, who still holds a minor stake, is closely monitoring the developments in the company, more so after PNB moved to tighten its grip on S P Setia.
“When PNB launched the take- over, Liew called me out of respect. As a co-founder of S P Setia, I have concerns about whether PNB can continue to grow the company,” he told The Edge Financial Daily.
On Sept 28, PNB launched a takeover bid after the shareholding of the government-linked asset management firm and its parties acting in concert had increased their stake to 33.16% from 32.99% previously, following the purchase of an additional stake on the open market.
PNB is offering RM3.90 per share and 91 sen per warrant in S P Setia. The takeover offer caught many by surprise, including Liew. This is not a privatisation exercise, PNB said it will maintain the listed status of S P Setia after the takeover.
Some argue that the offer is not attractive, considering that S P Setia’s estimated net asset value is higher than RM5 per share.
The board has, in fact, invited competing bids for the shares in S P Setia immediately after PNB made its takeover move. As at Oct 12, no competing bid had been made.
But to Wong, who helped build S P Setia from scratch from a RM70 million construction company, money is not the sole consideration.
“Price is not the only factor in deciding whether or not investors should hold on to their S P Setia shares. The key question is, can PNB grow S P Setia further without the current management?” said Wong.
PNB has made its intentions clear to keep the current management at the helm, including Liew, who is described as one of the most prolific entrepreneurs and CEOs in the country.
Three weeks after the takeover offer, PNB’s president and group chief executive Tan Sri Hamad Kama Piah Che Othman assured the investing public that Liew will continue to lead S P Setia as its CEO.
The statement stressed that the existing management team would also continue to manage the company with “the same high professional standards and spirit of excellence”.
But the statement has not eased all the concerns over the company’s prospects over the long run.
Wong sees S P Setia as a company managed by professional manager, pointing out the fact that Liew only holds 11.3% equity interest.
Wong expects Liew to remain with S P Setia at least for the short term. However, he points out that it could be just a matter of time before Liew passes on the baton to his successor.
Wong hopes that whoever replaces Liew will continue Liew’s aspirations for the company — just Liew carried on Wong’s when he took over some 15 years ago.
Wong said he has no plans to come back to the corporate scene, adding that his focus now is to grow his privately owned business together with his sons.
“Experience is one thing, but values are what I can ultimately impart, to help my sons on their learning curve. It is very difficult to do that when you are running a public listed company as your commitment is mainly to your shareholders,” he said.
The total gross development value of Wong’s family-owned L&H Property Development Sdn Bhd is estimated at some RM300 million, of which the bulk comes from its Jaya One project.
According to Wong, L&H projects have done well so far. In fact, the buyers of his properties in Jaya One are mostly S P Setia customers.
Although Wong has been out of the corporate scene for a while, his entrepreneurial spirit has kept him busy with his own projects at an age when most people would want to enjoy their retirement.
Since he relinquished his management position in S P Setia, Wong has seldom attended shareholder meetings.
However, this time could be different. He will make it a point to attend the upcoming EGM that will be convened to seek shareholders’ approval on the proposed takeover offer, which will determine the future prospects of S P Setia.
“My sense of loyalty is synonymous with the company’s name, isn’t it?” he quips.
This article appeared in The Edge Financial Daily, November 14, 2011.
Now in his late 60s, Wong established Syarikat Pembinaan Setia Bina Sdn Bhd, which evolved into S P Setia, in 1974. He is an industry veteran and remains active in property development.
Like all other shareholders and employees, Wong, who still holds a minor stake, is closely monitoring the developments in the company, more so after PNB moved to tighten its grip on S P Setia.
“When PNB launched the take- over, Liew called me out of respect. As a co-founder of S P Setia, I have concerns about whether PNB can continue to grow the company,” he told The Edge Financial Daily.
On Sept 28, PNB launched a takeover bid after the shareholding of the government-linked asset management firm and its parties acting in concert had increased their stake to 33.16% from 32.99% previously, following the purchase of an additional stake on the open market.
PNB is offering RM3.90 per share and 91 sen per warrant in S P Setia. The takeover offer caught many by surprise, including Liew. This is not a privatisation exercise, PNB said it will maintain the listed status of S P Setia after the takeover.
Some argue that the offer is not attractive, considering that S P Setia’s estimated net asset value is higher than RM5 per share.
A view of S P Setia's award-winning project, Setia EcoPark, in Shah Alam.
The board has, in fact, invited competing bids for the shares in S P Setia immediately after PNB made its takeover move. As at Oct 12, no competing bid had been made.
But to Wong, who helped build S P Setia from scratch from a RM70 million construction company, money is not the sole consideration.
“Price is not the only factor in deciding whether or not investors should hold on to their S P Setia shares. The key question is, can PNB grow S P Setia further without the current management?” said Wong.
PNB has made its intentions clear to keep the current management at the helm, including Liew, who is described as one of the most prolific entrepreneurs and CEOs in the country.
Three weeks after the takeover offer, PNB’s president and group chief executive Tan Sri Hamad Kama Piah Che Othman assured the investing public that Liew will continue to lead S P Setia as its CEO.
The statement stressed that the existing management team would also continue to manage the company with “the same high professional standards and spirit of excellence”.
But the statement has not eased all the concerns over the company’s prospects over the long run.
Wong sees S P Setia as a company managed by professional manager, pointing out the fact that Liew only holds 11.3% equity interest.
Wong expects Liew to remain with S P Setia at least for the short term. However, he points out that it could be just a matter of time before Liew passes on the baton to his successor.
Wong hopes that whoever replaces Liew will continue Liew’s aspirations for the company — just Liew carried on Wong’s when he took over some 15 years ago.
Wong said he has no plans to come back to the corporate scene, adding that his focus now is to grow his privately owned business together with his sons.
“Experience is one thing, but values are what I can ultimately impart, to help my sons on their learning curve. It is very difficult to do that when you are running a public listed company as your commitment is mainly to your shareholders,” he said.
The total gross development value of Wong’s family-owned L&H Property Development Sdn Bhd is estimated at some RM300 million, of which the bulk comes from its Jaya One project.
According to Wong, L&H projects have done well so far. In fact, the buyers of his properties in Jaya One are mostly S P Setia customers.
Although Wong has been out of the corporate scene for a while, his entrepreneurial spirit has kept him busy with his own projects at an age when most people would want to enjoy their retirement.
Since he relinquished his management position in S P Setia, Wong has seldom attended shareholder meetings.
However, this time could be different. He will make it a point to attend the upcoming EGM that will be convened to seek shareholders’ approval on the proposed takeover offer, which will determine the future prospects of S P Setia.
“My sense of loyalty is synonymous with the company’s name, isn’t it?” he quips.
This article appeared in The Edge Financial Daily, November 14, 2011.
