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.
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