Whitmore buys another 1.06 million MKH shares at RM1.99 during takeover offer

PETALING JAYA (Sept 10): Whitmore Holdings Sdn Bhd acquired another 1.06 million shares in MKH Bhd at RM1.99 each on Sept 9, one sen below the RM2-per-share cash price under its unconditional mandatory takeover offer for the property developer.

In a Bursa Malaysia filing on Thursday (Sept 10), MKH said Whitmore acquired 1,064,500 shares at RM1.99 apiece, implying a consideration of about RM2.12 million.

The latest purchase follows Whitmore’s acquisitions of 841,900 MKH shares on Sept 7 and 735,600 shares on Sept 8, also at RM1.99 each.

Its disclosed purchases over the three trading days total 2.64 million MKH shares, worth about RM5.26 million.

The latest dealing was disclosed pursuant to Paragraph 19.05 of the Rules on Take-overs, Mergers and Compulsory Acquisitions.

Whitmore, a wholly owned subsidiary of Batu Kawan Bhd, is offering RM2 in cash for each remaining MKH voting share not already owned by Whitmore and Batu Kawan, the ultimate offeror.

Offer assessed as ‘not fair but reasonable’

Kenanga Investment Bank Bhd, MKH’s independent adviser, has assessed the RM2 offer as not fair but reasonable and recommended that shareholders accept it.

Kenanga estimated MKH’s value at RM4.31 per share under a sum-of-parts valuation, putting the RM2 offer at a 53.6% discount to its estimate.

However, the independent adviser cited MKH shares’ relatively low trading liquidity and the absence of an alternative offer in assessing the offer as reasonable.

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