This article first appeared in The Edge Malaysia Weekly on May 25, 2026 - May 31, 2026

On May 18, property developer and plantation player MKH Bhd (KL:MKH) stated that the company “categorically denies the contents of The Edge article” and added that it would make the appropriate announcement in strict compliance with the Main Market Listing Requirements of Bursa Malaysia, should there be any material developments in the matter.

This was in response to an unusual market activity query by Bursa on May 15, as well as an article published by The Edge on May 18 (Issue 1627) titled “Corporate exercise in the offing at MKH”.

MKH also stated that day that “to the best of our knowledge, and after making due inquiry with the company’s directors and major shareholder, namely Chen Choy & Sons Realty Sdn Bhd (CCSR), the board has been notified by CCSR that it is periodically engaged in discussions with external parties. 

However, as at the date of the announcement, there was neither any assurance that these discussions would result in any definitive agreement or transaction, nor as to the final terms on which such a transaction might be undertaken.

Even after any corporate exercise was denied, MKH’s stock continued to rally.

A day later, on May 19, trading in the shares of MKH, its 65.3%-owned subsidiary MKH Oil Palm (East Kalimantan) Bhd (KL:MKHOP) and plantation giant Batu Kawan Bhd (KL:BKAWAN) was suspended pending an announcement.

On May 20, it was announced that Batu Kawan had made a RM2 per share takeover offer for the property and plantation group, following its acquisition of a 47.7% stake in MKH from the Chen family for RM549.8 million. The acquisition triggered a mandatory general offer for the remaining MKH shares at RM2 apiece.

While it is possible that a firm offer from Batu Kawan had yet to materialise on May 18, which would justify the denial of any corporate exercise, the sudden U-turn does not reflect well on the situation.

Of more concern is the manner in which MKH’s share price shot up, rising 90% prior to its suspension. The spike, coupled with heavy trading volume, suggests that certain insiders may have acted on knowledge of an impending corporate exercise. 

Is this the case or a mere coincidence?

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