KUALA LUMPUR (July 16): Property developer MKH Bhd (KL:MKH) has appointed Kenanga Investment Bank Bhd as independent adviser in relation to Batu Kawan Bhd's (KL:BKAWAN) proposed RM2-a-share mandatory general offer (MGO) for the company.
In a bourse filing on Thursday, MKH said Kenanga IB will prepare the independent advice circular for the takeover offer.
Batu Kawan, via wholly-owned unit Whitmore Holdings Sdn Bhd, triggered the MGO for the property developer after it acquired a combined 47.7% stake in MKH from the Chen family for RM549.8 million, or RM2 per share. The group intends to privatise MKH should it secure a 90% stake in the company.
Whitmore is also acquiring a 3.9% stake in MKH Oil Palm (East Kalimantan) Bhd (KL:MKHOP).
As MKH and its subsidiaries collectively own 65.3% of MKHOP, Batu Kawan will be required to undertake an MGO for MKHOP at 64.78 sen per share once the MKH offer becomes unconditional. However, it intends to maintain MKHOP's listing status.
The RM2-a-share MGO could cost Batu Kawan up to RM603.8 million, bringing the total potential outlay for the acquisition and privatisation of MKH to about RM1.15 billion.
MKH's share price has jumped 89.1% from 91.5 sen on May 13 to RM1.73 on May 18. It climbed further to RM1.90 and has traded above that level since. The counter closed at RM1.96 on Thursday, giving the group a market capitalisation of RM1.15 billion.