KUALA LUMPUR (Sept 30): Batu Kawan Bhd’s (KL:BKAWAN) unconditional mandatory takeover of MKH Bhd (KL:MKH) has crossed the 95% threshold, paving the way for the property developer’s delisting.
As at market close on Wednesday, Batu Kawan and its wholly owned unit Whitmore Holdings Sdn Bhd, together with parties acting in concert, held 548.85 million MKH shares, representing a 95.16% stake, according to a statement issued on their behalf by Maybank Investment Bank Bhd.
With the offeror having received valid acceptances of not less than nine-tenths in the nominal value of the offer shares, Batu Kawan and Whitmore will invoke Section 222(1) of the Capital Markets and Services Act 2007 to compulsorily acquire the remaining MKH shares from dissenting shareholders, the statement said.
The takeover offer, it said, will remain open until Oct 8, following an extension from the original Sept 17 closing date.
Bursa Malaysia Securities will suspend trading of MKH shares upon the expiry of five market days from Oct 8. Thereafter, Batu Kawan and Whitmore will procure MKH to take the necessary steps to withdraw its listing status from Bursa Malaysia.
Two weeks ago, minority shareholders of MKH and its separately listed plantation arm, MKH Oil Palm (East Kalimantan) 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.
On the other hand, 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 MKH Oil Palm's net asset value, and noted that Batu Kawan intends to maintain the plantation unit's listing.
The takeover was initiated in May, when Batu Kawan, through Whitmore, agreed to acquire a combined 47.7% stake in MKH from members of the Chen family for RM549.8 million, or RM2 per share.
The RM2 offer valued the total cost of taking MKH private at up to RM1.15 billion, including the initial stake purchase.
Batu Kawan's share price closed unchanged at RM20.52 on Wednesday, with a market capitalisation of RM8.2 billion.
MKH also settled unchanged at RM1.99 with a market value of RM1.17 billion, while MKH Oil Palm closed unchanged at 64.5 sen, valuing the group at RM660 million.
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