A property and plantation group has agreed to acquire RM340.9mln worth of shares in a subsidiary firm, potentially leading to a takeover and privatisation of the group.
for RM549.8mil, a move that will trigger a mandatory takeover offer and potentially lead to the privatisation of the property and plantation group. In a filing with Bursa Malaysia, Batu Kawan said its wholly owned subsidiary, Whitmore Holdings Sdn Bhd , had entered into agreements to acquire a 29.6% stake in MKH for RM340.9mil cash, or RM2 per share.
Whitmore also agreed to acquire a 3.9% stake in MKH Oil Palm Bhd for RM25.4mil cash, or 64.78 sen per share. In addition, Whitmore also proposed to acquire another 18.1% stake in MKH for RM208.9mil cash, also at RM2 per share. Upon completion of the acquisitions, the direct shareholding of the offeror will increase from nil to 29.6% in MKH and from nil to 3.9% in MKHOP , respectively.
Following the proposed acquisition, Whitmore’s stake in MKH would rise to 47.7%, triggering a MO for all remaining MKH shares not already owned by Batu Kawan, Whitmore and persons acting in concert with them.
“The offeror will be obliged to extend the proposed MO where the MKH offer price would be the same price per MKH share pursuant to the proposed MKH acquisition,” Batu Kawan said. The RM2 offer price represented a 20.48% premium to MKH’s last traded price of RM1.66 on May 19, and a premium of between 37.34% and 57.22% over its five-day to 12-month volume weighted average prices.
Batu Kawan said the acquisitions and proposed offers would broaden the group’s earnings base and operational scale, leveraging MKH’s property development business and plantation assets in East Kalimantan, Indonesia.
“The enlarged Batu Kawan Group will, subject to Batu Kawan’s shareholders’ approval, be able to pursue synergistic initiatives aimed at achieving greater economies of scale, cost synergistic benefits through savings on capital and operational expenditure, access to a larger pool of talent and expertise and adoption of best practices currently used by each group,” it said. Batu Kawan said it may leverage on the MKH Group’s landbank, project management capabilities and construction ecosystem to unlock value for future development opportunities.
“Further, the addition of the MKH Group’s plantation estates would enlarge the Batu Kawan Group’s plantation footprint within East Kalimantan, Indonesia and enable operational synergies through the sharing of agronomic expertise, sustainability practices and supply chain efficiencies alongside the Batu Kawan Group’s existing plantation operations,” it said. Upon completion of the acquisitions and assuming full acceptance of the MO, Batu Kawan said the enlarged group would have a pro forma revenue of RM26.81bil and profit before taxation of RM1.82bil.
Batu Kawan said if it and its PACs eventually hold 90% or more of MKH shares following the offer, it does not intend to maintain MKH’s listing status on the Main Market of Bursa Malaysia. AEON Credit raises additional RM550mil from RM5b sukuk wakalah programme
Batu Kawan RM549.8Mln Takeover Offer Mandatory Takeover Offer Whitmore Holdings Sdn Bhd MKH MKH Oil Palm (East Kalimantan) Bhd Property Development Business Plantation Assets Indonesia
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Affin Group catat untung bersih RM135.49j pada suku pertamaAffin Group (Affin) meraih untung bersih RM135.49 juta bagi suku pertama tahun kewangan berakhir 31 Mac 2026, lebih tinggi berbanding RM124.08 juta pada suku sama tahun sebelumnya.
Read more »
Developer given 30 days to reopen Ranggu roadTAWAU: Residents in the Ranggu area here have given the Bandar Sri Indah (BSI) developer 30 days to reopen the road reserve access connecting Prima Ranggu to BSI, Batu 10 Jalan Apas.
Read more »
Batu Tiga flood mitigation project ready by JulyBOURNEMOUTH, England, May 19 (Reuters) - Pep Guardiola confronted a heartbreaking end to Manchester City's title bid on Tuesday but deflected questions again about his future, saying no decision had been made while warning it would be the wrong moment to make such an announcement.
Read more »
14-year-old boy drowns in Sungai Langat, near Batu 14, Petaling JayaA 14-year-old boy has drowned in Sungai Langat near Kampung Rantau Panjang, Batu 14, Petaling Jaya. The victim, Muhamad Arif Asyraf Zaiful Anuar, went to the river with his friends before the incident occurred around 1pm. It is believed that the victim was swimming in shallow water when he was swept away by the current and drowned.
Read more »