KUALA LUMPUR (Sept 14): Batu Kawan Bhd (KL:BKAWAN) has extended the deadline for MKH Bhd (KL:MKH) shareholders to accept its unconditional mandatory takeover offer of RM2 per share by three weeks from Sept 17 to Oct 8.
The extension comes as Batu Kawan — together with its wholly owned Whitmore Holdings Sdn Bhd and parties acting in concert — secured a 90.04% stake in MKH as of market close on Monday, according to the deal's principal adviser and arranger Maybank Investment Bank Bhd in a bourse filing by Batu Kawan.
Having breached the 90% mark, the adviser reiterated that the joint offerors do not intend to maintain MKH's listing status on the Main Market of Bursa Securities.
Consequently, trading in MKH shares will be suspended five market days after the extended closing date, after which the offerors will initiate formal delisting procedures.
Maybank IB advised remaining shareholders who wish to accept the offer to refer to the offer document for tendering procedures before the new deadline.
Last week, minority shareholders of MKH and its separately listed plantation arm, MKH Oil Palm Bhd (KL:MKHOP) were given contrasting recommendations regarding Batu Kawan's dual takeover play.
Kenanga Investment Bank Bhd, the independent adviser appointed by MKH, deemed the RM2 cash buyout “not fair but reasonable”, noting that the offer price undervalues the property developer’s fair asset worth.
Conversely, Mainstreet Advisers Sdn Bhd urged MKH Oil Palm shareholders to reject the related 66.26 sen per share buyout offer, labelling it "not fair and not reasonable". Mainstreet emphasised that the offer represents a steep 47% discount to MKHOP's net asset value, and noted that Batu Kawan intends to maintain the plantation unit's listing. No extension date has been announced for the MKHOP offer.