UNLOCKING VALUES: PNB undecided between I&P chief and its own internal candidate
I&P Group Sdn Bhd's Datuk Jamaludin Osman is among candidates tipped to head SP Setia Bhd with the imminent departure of its president and chief executive officer Tan Sri Liew Kee Sin next year.
Business Times understands that Permodalan Nasional Bhd (PNB) is considering appointing either Jamaludin or a senior executive from within the PNB group of companies as the new SP Setia chief.
When contacted, Jamaludin said he wasn't aware of any plans to appoint him as SP Setia head.
"There is a lot of talks, but I personally do not know anything," he said.
Jamaludin has been I&P group CEO since October 1 2004 and managing director from January 1 2005.
I&P was formed from the merger of three property companies in the PNB stable, namely Island & Peninsular Bhd, Pelangi Bhd and Petaling Garden Bhd.
The company's assets are worth about RM10 billion.
Jamaludin has also served as Syarikat Perumahan Pegawai Kerajaan Sdn Bhd MD since 1999 and was a civil engineer with Petroliam Nasional Bhd prior to that .
Meanwhile, Liew has confirmed his departure, although the timing remains unclear.
CIMB analyst Terence Wong believes that Liew is likely to retire in March next year when the third put option at RM3.95 per share for his remaining stake in SP Setia is due.
SP Setia's major shareholder is PNB. However, as PNB does not have management control yet, the current succession plan calls for SP Setia deputy president Datuk Voon Tin Yow to take over as CEO when Liew retires and for chief financial officer Datuk Teow Leong Seng to assume the deputy president's role.
It was reported that PNB is exploring ways to unlock the value of its property assets housed under I&P, either by a direct listing of the company and/or injecting its RM10 billion worth of assets into SP Setia.
PNB is inclined to inject the assets into SP Setia as a consolidation between the two companies would enhance the value of I&P's projects, and see SP Setia emerge as a mega property company.
SP Setia's market capitalisation of close to RM8 billion, combined with I&P's assets, could create a company with a market capitalisation of RM18 billion.