Oei Hong Leong

Singapore Tycoon.

Indonesian-born businessman and philanthropist sold his stake in formerly troubled Natsteel for more than $100 million. Delisted his International Capital Investment in May; now making takeover bid for Japan Land, which sells land and custom-built houses in Japan.


  • September 13, 2008 - Oei fails in bid to take control of Japan Land.1

TYCOON Oei Hong Leong's dream of taking control of a Japanese company has been thwarted for now, after his takeover offer for Japan Land lapsed yesterday.

Mr Oei, who had a 4.01 per cent stake in Japan Land through International Capital Investment Ltd, offered to buy the remaining shares at 60 cents apiece in late July.

But by the close of his offer yesterday, he and parties acting in concert with him had received valid acceptances representing a mere 0.32 per cent of Japan Land's total issued share capital and 0.45 per cent of its outstanding warrants.

After accounting for valid acceptances, Mr Oei and related parties now hold 4.39 per cent of Japan Land's shares and 0.74 per cent of its warrants.

Since the offer failed to achieve a total of 50 per cent of the voting rights attributable to the issued share capital of Japan Land by the closing date, it has not become unconditional and has therefore lapsed.

The lack of acceptances could be due to perceived under-valuation.

Last month, DMG & Partners Securities advised directors and shareholders of Japan Land to reject Mr Oei's offer, citing 'insufficient compelling reasons'.

The price was pitched at an estimated 7.14 per cent premium to Japan Land's net tangible assets (NTA) per share at March 31.

But based on revalued NTA per share, it could have been at a discount ranging from 13.04 per cent by the most conservative estimate to as high as 21.05 per cent.

Japan Land's key shareholder Aizawa Securities told BT last week it would not sell its stake to Mr Oei. On the contrary, it has gradually raised its stakeholding since the takeover offer to 23.06 per cent as at Sept 9.

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