PNB to continue to seek strategic opportunities

PERMODALAN Nasional Bhd, one of the country's largest fund managers, is happy with its recent SP Setia Bhd deal and will continue to seek other opportunities despite current market volatilities, its chief said.

PNB manages more than RM190 billion, including unit trust funds.

"We have been in the industry for more than 30 years ...we've seen the ups and downs. The strategy we adopt is always to look at opportunities. But our portfolio selection must be very strategic as we want to make sure our returns are reasonable (to be able to continue paying good dividends)," its president and group chief executive Tan Sri Hamad Kama Piah Che Othman told reporters on the sidelines of the launch of the Skim Amanah Rakyat 1Malaysia (SARA 1Malaysia) here yesterday.

Last Friday, PNB roped in SP Setia's chief executive officer Tan Sri Liew Kee Sin to make a joint buyout offer for the property developer at RM3.95 a share.

The deal, described by analysts as a win-win situation for all parties including minorities, was an improvement over its solo bid of RM3.90 a share in September last year.

Under the new deal, Liew will continue to helm the company for three years. No changes will be made to the board and PNB keeps its two board seats.

"Of course, I think that's a good deal because the management will be intact, carry on whatever they are performing. When we buy things, we want to create value ... we want to make sure the management must be strong, the brand is there, and we also look at minority interest.

"That's why we (moved) up a bit (the offer price), to give opportunity for people to decide," he said.

He voiced hope, however, that not all shareholders would take up the offer.

"With the new opportunities that are in the counter now, I hope they wait, because we also are looking at long-term as we want to make sure we get good returns," he remarked.

On whether the Employees Provident Fund (EPF), which also holds a stake in SP Setia, would accept the offer, he said, "That one, we hope for the best, that's it".

The EPF is said to hold about 12.6 per cent in the developer.

SP Setia's shares closed unchanged at RM3.94 yesterday.