Johor Corp’s Kulim offer generous

Privatisation move: A worker harvesting oil palm fruit at a Kulim plantation. Kulim’s 62 shareholder Johor Corp has expressed its intention to take the plantation firm private through a selective capital reduction and repayment exercise amounting to RM2.22bil.

THE offer price for the privatisation of Kulim (M) Bhd may come at a premium to its net asset value and market price but some believe that its intrinsic value could be higher over the long run.

RHB Research analyst Alvin Tai, in a note, says the offer price of RM4.10 is generous as it is 9.6% above its previous target price of RM3.74 and 24% more than its previous closing.