KUALA LUMPUR (June 8): IJM Plantations Bhd and Kuala Lumpur Kepong Bhd (KLK) have requested for suspension of trading of their shares effective 2.30pm today, pending an announcement.
In filings with the bourse, Bursa Malaysia said the structured warrants relating to IJM Plantations and KLK would also be suspended.
It is learnt that KLK is making an offer to take over IJM Plantations. Shareholders of IJM Plantations will be given the option of either a cash offer or share swap.
According to sources, the takeover deal is valuing IJM Plantations in the range of RM2.50 to RM2.70 per share.
IJM Plantations' share price has been on an upward trend since May 21 after touching a low of RM1.55 on Oct 5 last year. The stock has climbed 91 sen or 59% since then.
The counter was last traded at RM2.46 prior to the suspension, giving it a market capitalisation of RM2.12 billion.
Based on a valuation of RM2.70 per share, IJM Plantations will be valued at RM2.38 billion.
IJM Plantations' substantial shareholders comprise IJM Corp Bhd (with a 56.2% stake) and the Employees Provident Fund (EPF) (13.89%).
According to its 2020 annual report, IJM Plantations has a total of 60,966 hectares (ha) in total planted area, of which 24,898ha are located in Malaysia, while 36,068ha are in Indonesia.
Approximately 72% of its planted areas comprise mature prime trees aged between eight and 20 years old. Meanwhile, 12% of its plantations comprise mature young trees aged four to seven years, followed by 11% immature trees aged one to three years, while the balance 5% are made up of mature trees aged above 20 years.
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.
KLK rose 16 sen or 0.7% to RM21.76 prior to the suspension, giving it a market capitalisation of RM23.52 billion.