PT Agro Muko oil palm plantation in Indonesia
KUALA LUMPUR: Kuala Lumpur Kepong Bhd
(KLK) has extended the offer period for MP Evans Group PLC shares to Dec 21 but presses on with its existing offer price despite having received valid acceptances representing only 12.9% of the London-listed plantation firm's existing share capital as of the first closing date (Friday).
In a statement to London’s Alternative Investment Market on Friday, it said the next closing date would be 1pm (London time) on Dec 21 and there was no certainty the offer period would be extended again.
“In light of the of the announcement made by KLK on Thursday, Dec 1, the MP Evans’ response on Friday, Dec 2, and the MP Evans’ announcement on Tuesday, Dec 6, outlining the proposed sale of its minority interest in an Indonesian joint venture, KLK considers that MP Evans shareholders would benefit from further time to consider the increased offer (of 740 pence per share),” it said.
KLK had initially approached MP Evans’ board with an offer price of 640 pence but later sweetened the offer to 740 pence, a 74% premium to MP Evans’ closing price on Oct 24 (the last business day before the offer period began).
However, MP Evans’ board rejected this revised offer as well, saying that it “very substantially undervalues the company.” It “strongly” urged MP Evans shareholders not to sell their shares to KLK.
KL-Kepong International Bhd (KLKI), the KLK unit that made the offer, received valid acceptances in respect of 7.188 million MP Evans shares -- or just 12.9% of the current ordinary share capital of MP Evans -- as at 1pm on Friday, the first closing date.
Recall that the offer is conditional on the KLK group’s receiving valid acceptances, together with MP Evans shares acquired or agreed to be acquired, that carry a total of more than 50% voting rights in MP Evans.
The MP Evans group has a majority interest in in 21,600 planted hectares and a minority interest in 22,000 planted hectares of oil palm plantations in Indonesia. Earlier this week, it entered into a conditional agreement to sell its 36.8% stake in PT Agro Muko for US$100mil, which would leave it with a minority interest in 2,300 planted hectares in the republic.
In Malaysia, it owns a 40% stake in Bertam Properties Sdn Bhd and 70ha of plantation land.
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