KUALA LUMPUR: Perduren (M) Bhd will divest its existing property assets to focus on a possible niche area of property development and property investment businesses related to the oil and gas (O&G) industry, the company said in a filing with Bursa Malaysia yesterday.

The decision was made by new controlling shareholders Datuk Kamaluddin Abdullah — the son of former prime minister Tun Abdullah Ahmad Badawi — and Datuk Mazlin Junid, the former president and chief executive officer (CEO) of Daya Materials Bhd. Both have extensive experience in the O&G sector.

“Whilst the joint offerors (Kamaluddin and Mazlin) have business interests and experience in property development, they also have business interests and experience in the oil and gas industry, from which they intend to contribute positively to the business and financial performance of the Perduren group and correspondingly enhance the value of Perduren,” said the announcement.

“A possible niche area of property development and property investment that the joint offerors may explore, by virtue of their experiences and network in the oil and gas industry, is in oil and gas-related real estate developments such as supply bases, onshore accommodation and real estate, to support the oil and gas industry,” it added.

Kamaluddin and Mazlin acquired a 69.3% stake in Perduren (fundamental: 0.10; valuation: 1.8) late last year, from Tan Sri David Law’s TS Law Group Sdn Bhd, at RM1.60 per share or RM149.6 million. They subsequently launched a takeover offer to acquire the remaining 30.7% stake in Perduren for RM66.27 million cash or RM1.60 per share.

The duo had expressed their intention to maintain Perduren’s listing status following the proposed takeover, for which the offer document was despatched yesterday.

Shares in Perduren fell by one sen or 0.51% to close at RM1.95 yesterday — higher than the RM1.60 offer price — with a market capitalisation of RM264.4 million. 

This article first appeared in The Edge Financial Daily, on January 27, 2015.