Whitmore buys more MKH, MKHOP shares after adviser urges rejection of palm-oil offer

PETALING JAYA (Sept 8): Whitmore Holdings Sdn Bhd has acquired more shares in MKH Bhd and MKH Oil Palm (East Kalimantan) Bhd (MKHOP), a day after MKHOP’s independent adviser recommended that shareholders reject Whitmore’s takeover offer.

In separate Bursa Malaysia filings on Tuesday (Sept 8), MKH and MKHOP said Whitmore acquired 841,900 MKH shares at RM1.99 each and 203,800 MKHOP shares at 66 sen each on Monday (Sept 7).

The purchases were made below Whitmore’s respective cash offer prices of RM2 per MKH share and 66.26 sen per MKHOP share. Whitmore is a wholly owned subsidiary of Batu Kawan Bhd.

Adviser recommends rejection

MKHOP on Monday issued an independent advice circular in relation to Whitmore’s unconditional mandatory takeover offer. Independent adviser MainStreet Advisers Sdn Bhd concluded that the 66.26 sen-per-share offer was “not fair and not reasonable”, and recommended that shareholders reject it. MKHOP’s non-interested directors concurred with the recommendation.

MainStreet estimated MKHOP’s revalued net asset value at RM1.26 per share as at June 30, 2026, and said the offer price represented a discount of 59.74 sen, or 47.4%, to its estimated value.

The adviser nevertheless noted that the offer price was above MKHOP’s historical market prices over several reference periods.

Listing to be maintained

MainStreet said the offer was not reasonable, citing Whitmore’s and Batu Kawan’s stated intention to maintain MKHOP’s Main Market listing and not to compulsorily acquire the remaining shares, even if the statutory conditions are met.

It said shareholders would therefore still have an opportunity to realise their investment in the open market after the offer closes, although there was no assurance that MKHOP shares would continue trading at current prices or volumes.

Whitmore’s offer for MKHOP is scheduled to close at 5pm on Sept 17, unless extended.

The MKHOP offer arose after Whitmore’s takeover of MKH triggered an obligation to make an offer for MKHOP, which is considered a significant downstream company of MKH.

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