By Khairie Hisyam
With talk surfacing that Permodalan Nasional Bhd or PNB may be appointing its own executive to head SP Setia after the company’s president and chief executive officer leaves, is the previously announced SP Setia succession plan off?
A daily newspaper reported today that Jamaludin Osman, group managing director of I&P Group Sdn Bhd, is among the candidates for SP Setia’s top post after the current chief Liew Kee Sin departs.
According to the report, Permodalan Nasional Bhd (PNB) is considering either Jamaludin or another senior executive from within the PNB’s group of companies to take Liew’s place, although Jamaludin denies being aware of any such plan.
I&P Group is a wholly owned subsidiary of PNB, which in turn owns close to 70% of SP Setia.
When contacted by KiniBiz, Jamaludin declined to elaborate further on his comment, only reiterating that he does not know anything.
“I am only an employee,” said Jamaludin.
SP Setia chairman Zaki Azmi denies any knowledge of such a plan by PNB.
Zaki Azmi
“Sorry, I have not heard about it except from (the daily’s report) today,” said Zaki to KiniBiz when contacted about the matter.
However, a source with knowledge of the matter confirmed to KiniBiz that Jamaludin is on track towards taking over the SP Setia top post.
“So far that is the plan,” said the source on condition of anonymity.
At publication time, PNB has not responded to queries emailed by KiniBiz, while SP Setia declined to comment. Liew could not be reached for comment on the matter.
At 3pm today, SP Setia was down 1 sen to RM3.22 on slightly less than half a million shares traded.
‘No surprise there’
Speaking to KiniBiz, CIMB head of research Terence Wong commented that Jamaludin’s appointment to helm SP Setia, if it happens, would not surprise him “because (I&P) is where PNB’s expertise in property lies”.
The talk surfaces hot on the heels of a recent report by a business weekly that PNB may be looking to inject its property assets in I&P Group into SP Setia.
I&P Group was formed in 2009 following the merger between Island & Peninsular Bhd, Petaling Garden Bhd and Pelangi Bhd, which were all privatised by PNB between 2005 and 2007 for a total of RM1.34 billion.
Wong had previously noted that PNB’s possible asset injection into SP Setia would not be surprising as the prospect has been expected for some time.
“However, the timing does appear to be sooner than expected as PNB does not have management control yet,” said Wong in a report last month.
Liew Kee Sin
PNB’s takeover of SP Setia in 2012 saw PNB and Liew strike a deal to let Liew retain management control for three years following the takeover.
Liew is set to leave by March 2015 at the latest, though there was talk that he may leave as early as March 2014 when his final put option tranche at RM3.95 per share for his remaining 2.76% shareholding in SP Setia is due.
In March this year, SP Setia’s board of directors approved a succession plan that would see Voon Tin Yow, current deputy president and chief operating officer, take Liew’s place when the latter leaves.
More recently, Liew has been linked to fast-rising property player Eco World Development Holdings Sdn Bhd, which came into the spotlight last month with a takeover bid for little-known listed developer Focal Aims Holdings Bhd.
Notably, Eco World is staffed by former SP Setia top brass as well as Liew’s eldest son Liew Tian Xiong, sparking market talk that Eco World is his private vehicle after leaving SP Setia.
While Liew has denied any involvement with Eco World, a Bursa announcement dated Oct 1, 2013 stated that Liew and his wife is providing financial support for Tian Xiong for the RM230.7-million acquisition of a 65% stake in Focal Aims, in which Tian Xiong is an offering party alongside Eco World.
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