KUALA LUMPUR (Dec 11): Ekovest Bhd’s mandatory general offer (MGO) to buy out shares in durian planter, PLS Plantation Bhd, at 95 sen apiece must be a good deal, judging by the overwhelming acceptance to the offer.

Minority shareholders who collectively held 122.96 million shares, or a 33.85% stake, have accepted the offer. This has bumped up Ekovest’s shareholding in PLS to 91.24%. This block of shares is valued at RM116.8 million at the offer price.

On top of that, the construction group also holds 74.91% of PLS’ warrants, following the closing of its mandatory general offer (MGO) at 5pm today.

Notwithstanding that it collectively holds more than 90% of the issued shares, Ekovest intends to maintain the listing status of PLS on the Main Market of Bursa Securities.

Accordingly, the group will be working together with PLS to explore various options or proposals to rectify the non-compliance with the public spread requirement.

The offer price of 95 sen was at a 11.5 sen or 14% premium to its last traded price of 83.5 sen before Ekovest announced the MGO.

Roughly one month before the MGO, the hardly traded PLS share price climbed from 59 sen on Aug 21 to 83.5 sen. The stock has gained 98% from the low of 45 sen on March 17. Year to date, it is up by 21%.

To recap, on Sept 29, Ekovest announced it had entered into agreements with three related parties for the group to acquire a total of 89.1 million shares, or a  24.54% stake, at 95 sen per share and 78.3 million warrants at 15 sen per unit in PLS for RM85.8 million cash, and that triggered the MGO.

The share purchases are deemed related party transactions. The vendors are PLS’s managing director Tan Sri Lim Keng Cheng, Limbongan Resources Sdn Bhd (LRSB) and Lim Seong Hai Holdings Sdn Bhd (LSHHSB).

LRSB is owned by Lee Hun Kheng and Datuk Lim Keng Guan, while LSHHSB is owned by Keng Cheng, Keng Guan, Lim Keng Hun and Lim Pak Lian.

The vendors are related to Ekovest’s executive chairman and controlling shareholder Tan Sri Lim Kang Hoo.

Interestingly, PLS’ share price went up 7.5 sen or 7.9% to RM1.02 today before the closing of the MGO. The company’s market capitalisation is at RM370.5 million.

Ekovest rose one sen or 1.9% to 53.5 sen, giving it a market capitalisation of RM1.44 billion.