MKH hits billion-ringgit market value after Batu Kawan’s takeover offer at RM2 a share

KUALA LUMPUR (May 21): MKH Bhd (KL:MKH) surged to a nine-year high and crossed the billion-ringgit valuation mark after Batu Kawan Bhd (KL:BKAWAN) unveiled a RM2-per-share takeover offer for the property and plantation group.

MKH shares climbed to RM1.92 before easing to RM1.89 at Thursday's midday break, valuing the company at about RM1.09 billion. More than 31 million shares changed hands, compared with just 133,000 shares traded a week earlier when the stock was at a multi-year low of 91 sen.

The rally followed Batu Kawan’s acquisition of a 47.7% stake in MKH from the Chen family for RM549.8 million through its wholly owned subsidiary, Whitmore Holdings Sdn Bhd. The deal triggered a mandatory general offer (MGO) for the remaining MKH shares at RM2 each.

Batu Kawan said it intends to privatise MKH if it secures at least a 90% stake in the company.

The group is also acquiring a 3.9% stake in MKH Oil Palm (East Kalimantan) Bhd (KL:MKHOP). Since MKH owns 65.3% of MKHOP, Batu Kawan will also be required to launch an MGO for MKHOP at 64.78 sen per share once the MKH offer becomes unconditional. However, Batu Kawan intends to keep MKHOP listed.

In contrast to MKH’s surge, MKHOP shares slipped 3% to 64 sen, slightly below the offer price, valuing the company at RM649.2 million. Some 4.2 million shares changed hands.

Batu Kawan said the acquisition would strengthen its property development and plantation businesses, particularly by expanding its plantation footprint in East Kalimantan, Indonesia, while creating operational synergies and leveraging MKH’s land bank and project management expertise.

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