KUALA LUMPUR: Amid a takeover offer from its largest shareholder Permodalan Nasional Bhd (PNB), S P Setia president and CEO Tan Sri Liew Kee Sin has assured shareholders that the proposed management agreement between PNB and the property developer will bode well for all stakeholders.
“It is an agreement that will be a win-win for everybody; for S P Setia, for myself, everybody will be happy with this management agreement,” Liew told a press conference yesterday after announcing the group’s latest financial results.
While remaining tightlipped on specifics, Liew pre-empted questions from reporters by stressing that the ball is now in the Securities Commission’s (SC) court after the parties had ironed out the agreement over the last six weeks since PNB launched the takeover bid of S P Setia in late September.
After deliberations, the SC could reject, accept or amend portions of the management agreement.
Last Friday, PNB submitted a proposal to the SC to formalise incentives and management rights relating to the business of S P Setia.
Liew confirmed The Edge weekly’s report on Nov 29 that the management agreement would include an incentive package provided that S P Setia achieve specific milestones.
“The agreement is quite comprehensive. All the answers are inside the agreement. But take it from me, if this agreement can be implemented it is good for everybody.
“This is the first time an institutional fund is having a controlling stake in a company and yet allow entrepreneurs like ourselves to continue running it and to create value. I think it’s a good thing.”
On the key question of how long he will remain at S P Setia’s helm, Liew quipped, “Wait until this agreement is out. But there are lots of good people in Malaysia. We are not the only ones who can do the job.”
Liew announced yesterday that S P Setia is targeting RM4 billion in sales in 2012 despite concerns of a weaker economic environment and the central bank’s recent prudent lending guidelines for housing mortgages.
“Look at our portfolio. We are a development supermarket [with products ranging] from low-cost units to RM10 million villas. We think whichever way the market swings, we are able to cater to that segment of the market,” Liew said.
S P Setia said it had achieved a fourth consecutive year of record sales after posting full-year sales of RM3.29 billion for FY11, a 42% increase from the previous high of RM2.31 billion for FY10.
The property developer said its net profit for 4QFY11 ended Oct 31, grew 9.73% to RM82.46 million from RM75.15 million a year ago.
Pre-tax profit rose 7.57% to RM109.04 million from RM101.37 million while revenue climbed 13.5% to RM633.36 million from RM557.99 million a year ago.
For the 12-month period, S P Setia’s net profit rose 30.24% to RM327.97 million from RM251.81 million, while revenue grew 27.87% to RM2.23 billion from RM1.74 billion a year ago.
Liew said S P Setia is still keen to acquire assets in London and could re-evaluate proposals to acquire the Battersea Power Station in south London when the project is open for tender.
S P Setia recently lost its bid to acquire the asset after lenders to the Battersea Power Station development rejected the former’s preliminary offer to take over the debts amounting to £300 million (RM1.48 billion).
“We are definitely interested but subject to the terms in the tender. London is a very interesting market,” Liew said.
This article appeared in The Edge Financial Daily, December 9, 2011.
“It is an agreement that will be a win-win for everybody; for S P Setia, for myself, everybody will be happy with this management agreement,” Liew told a press conference yesterday after announcing the group’s latest financial results.
While remaining tightlipped on specifics, Liew pre-empted questions from reporters by stressing that the ball is now in the Securities Commission’s (SC) court after the parties had ironed out the agreement over the last six weeks since PNB launched the takeover bid of S P Setia in late September.
After deliberations, the SC could reject, accept or amend portions of the management agreement.
Last Friday, PNB submitted a proposal to the SC to formalise incentives and management rights relating to the business of S P Setia.
Liew confirmed The Edge weekly’s report on Nov 29 that the management agreement would include an incentive package provided that S P Setia achieve specific milestones.
“The agreement is quite comprehensive. All the answers are inside the agreement. But take it from me, if this agreement can be implemented it is good for everybody.
Liew: Everybody will be happy.
“This is the first time an institutional fund is having a controlling stake in a company and yet allow entrepreneurs like ourselves to continue running it and to create value. I think it’s a good thing.”
On the key question of how long he will remain at S P Setia’s helm, Liew quipped, “Wait until this agreement is out. But there are lots of good people in Malaysia. We are not the only ones who can do the job.”
Liew announced yesterday that S P Setia is targeting RM4 billion in sales in 2012 despite concerns of a weaker economic environment and the central bank’s recent prudent lending guidelines for housing mortgages.
“Look at our portfolio. We are a development supermarket [with products ranging] from low-cost units to RM10 million villas. We think whichever way the market swings, we are able to cater to that segment of the market,” Liew said.
S P Setia said it had achieved a fourth consecutive year of record sales after posting full-year sales of RM3.29 billion for FY11, a 42% increase from the previous high of RM2.31 billion for FY10.
The property developer said its net profit for 4QFY11 ended Oct 31, grew 9.73% to RM82.46 million from RM75.15 million a year ago.
Pre-tax profit rose 7.57% to RM109.04 million from RM101.37 million while revenue climbed 13.5% to RM633.36 million from RM557.99 million a year ago.
For the 12-month period, S P Setia’s net profit rose 30.24% to RM327.97 million from RM251.81 million, while revenue grew 27.87% to RM2.23 billion from RM1.74 billion a year ago.
Liew said S P Setia is still keen to acquire assets in London and could re-evaluate proposals to acquire the Battersea Power Station in south London when the project is open for tender.
S P Setia recently lost its bid to acquire the asset after lenders to the Battersea Power Station development rejected the former’s preliminary offer to take over the debts amounting to £300 million (RM1.48 billion).
“We are definitely interested but subject to the terms in the tender. London is a very interesting market,” Liew said.
This article appeared in The Edge Financial Daily, December 9, 2011.
