Hap Seng’s entry likely to solve Kretam’s shareholding spread issue

WHAT will the outlook be for Sabah-based planter Kretam Holdings Bhd if Hap Seng Plantations Bhd gets to buy into the company?

Recall that fellow Sabah planter Hap Seng Plantations is proposing to buy 55% of Kretam for 92 sen a share. The deal will need the approval of Hap Seng Plantation’s shareholders. Kretam’s major shareholder Datuk Freddy Lim is selling the 55% block to Hap Seng Plantations. Lim will have a balance 15.3% of which he has given an undertaking that he will not sell this into a general offer by Hap Seng Plantations. And neither will he divest this block in the next five years.