KUALA LUMPUR (June 9): Kuala Lumpur Kepong Bhd (KLK) has offered to acquire 494.87 million shares in IJM Plantations Bhd, representing a 56.2% equity stake, from IJM Corp Bhd for RM3.10 apiece or a total RM1.53 billion.
In a filing with the bourse, it said the acquisition will require the approval of the shareholders of IJM Corp and KLK at an extraordinary general meeting to be convened by the respective companies.
The acquisition will also require the consent from the lender of IJM Corp and IJM Plantations, as well as any other authorities or parties.
IJM Corp will have to confirm on or before 5pm on June 11, if it is agreeable to finalise the terms and conditions of the draft sale and purchase agreement for the purpose of execution, said KLK.
“If we do not receive your written confirmation and the SPA is not signed by IJM and KLK on or before 5pm, Friday, June 11, 2021 or such other mutually-extended date, this offer will lapse,” it said.
Meanwhile, IJM Corp said its board is in principle agreeable to finalise the terms and conditions with KLK, in order to meet the timing specified for the execution of the SPA.
Both IJM Plantations and KLK had yesterday requested for suspension of trading of their shares, pending an announcement.
theedgemarkets.com yesterday reported, quoting sources, that KLK would be making an offer to take over IJM Plantations, with shareholders of the latter to be given the option of either a cash offer or share swap.
IJM Plantations was last traded at RM2.46 prior to the suspension, giving it a market capitalisation of RM2.12 billion.
This would be the second major acquisition related to KLK in less than a year, as its controlling shareholder Batu Kawan Bhd took Chemical Company of Malaysia Bhd (CCM) private recently, after acquiring Permodalan Nasional Bhd’s (PNB) 56.32% stake in the latter for RM292.97 million.
Batu Kawan launched an offer in November last year of RM3.10 per CCM share it did not own, which was closed on Feb 2. CCM was delisted on Feb 19.