Batu Kawan unit’s takeover bid for MKH turns unconditional

KUALA LUMPUR (Aug 6): Batu Kawan Bhd (KL:BKAWAN) announced that its wholly owned subsidiary Whitmore Holdings Sdn Bhd’s voluntary takeover offer of MKH Bhd (KL:MKH) has become unconditional after the former’s shareholders approved the proposed acquisition at the group's extraordinary general meeting (EGM) on Aug 5.

Maybank Investment Bank Bhd (Maybank IB), on behalf of Batu Kawan (ultimate offeror), said the acquistion of the first tranche of MKH shares was completed on June 3, and the second tranche was completed on June 9, making Whitmore’s shareholding in MKH increased from nil to 29.6%.

“The group also acquired 18,557,400 MKH shares from the open market from June 15 to July 17.

“Following the open market acquisitions, Whitmore’s direct shareholding further increased from 29.6% to 32.8%,” said Maybank IB in a filing with Bursa Malaysia on Thursday.

In respect of MKH’s second tranche acquisition, Maybank IB said the direct business transaction of the share sale agreement (SSA) will be effected within seven days from Thursday, in which the SSA becomes unconditional.

“Upon the completion of MKH Acquisition 2, Whitmore’s direct shareholding will further increase to 50.9% to 32.8%,” it added.

The investment bank also said as the SSA becomes unconditional, Whitmore is obliged to extend an unconditional mandatory takeover to acquire the remaining voting shares in MKH which are not owned by the group and Batu Kawan, at a cash offer price of RM2.00 per share.

..........

Read about emerging trends, data-backed insights, growing subsectors, and expert commentaries in EdgeProp print. Subscribe now for your free copy!