KUALA LUMPUR (Sept 17): Batu Kawan Bhd (KL:BKAWAN) has increased its shareholding in MKH Oil Palm (East Kalimantan) Bhd (KL:MKHOP) to 79.58% following the conclusion of its mandatory general offer (MGO).
In a bourse filing, Maybank Investment Bank Bhd, on behalf of Batu Kawan and its wholly owned subsidiary Whitmore Holdings Sdn Bhd and parties acting in concert, said the MGO at 66.26 sen per share was concluded on Thursday, resulting in the acquisition of an additional 105.3 million shares, or a 10.38% stake, in MKH Oil Palm.
The group also received acceptances for an additional 88,647 shares, or 0.01% stake, under the offer, subject to verification after the posting date and up to the closing date.
On May 20, Batu Kawan announced that it had agreed to acquire a 47.7% stake in MKH Oil Palm parent company MKH Bhd (KL:MKH) from the Chen family for RM549.8 million, triggering a MGO for the remaining MKH shares at RM2 apiece.
The takeover of MKH also triggered the MGO for MKH Oil Palm, as MKH and its subsidiaries collectively hold a 65.3% stake in the plantation company. Batu Kawan is also acquiring a 3.9% direct stake in MKH Oil Palm.
Batu Kawan has said it intends to maintain MKH Oil Palm's listing on the Main Market.
As at the market close on Sept 14, Batu Kawan had secured a 90.04% stake in MKH and subsequently extended the closing date for its MGO for MKH by three weeks to Oct 8 from Sept 17.
Last week, minority shareholders of MKH and MKH Oil Palm received contrasting recommendations from the independent advisers on Batu Kawan's dual takeover.
Kenanga Investment Bank Bhd, the independent adviser to MKH, deemed Batu Kawan's RM2 cash offer “not fair but reasonable”, saying the offer price undervalues the property developer based on its fair asset value.
Meanwhile, Mainstreet Advisers Sdn Bhd, the independent adviser to MKH Oil Palm, recommended that shareholders reject the 66.26 sen per share offer, deeming it “not fair and not reasonable”.
Mainstreet said the offer represented a 47% discount to MKH Oil Palm's net asset value, noting that Batu Kawan intends to maintain the plantation company's listing.
MKH closed unchanged at RM1.99 on Thursday, valuing the group at RM1.17 billion
MKH Oil Palm, meanwhile, closed 1 sen lower to 65 sen, giving it a market capitalisation of RM665.33 million.
Batu Kawan ended the day 12 sen higher at RM20.28, valuing it at RM8.1 billion.