KUALA LUMPUR: MKH Bhd has proposed to list its wholly owned subsidiary MKH Oil Palm (East Kalimantan) Bhd (MKHOP) on the Main Market of Bursa Malaysia.
In conjunction with the proposed listing and prior to the proposed initial public offering (IPO), MKHOP proposed to undertake the proposed share split, proposed acquisition of PT Maju Kalimantan Hadapan (PT MKH) and PT Sawit Prima Sakti (PT SPS), proposed capitalisation, and thereafter, MKH proposed to undertake the proposed distribution.
"The applications to the relevant authorities in relation to the proposals will be submitted by March 31, 2023. Barring any unforeseen circumstances, the proposals are expected to be completed by the fourth quarter of 2023,” said MKH in a filing with Bursa Malaysia today.
It added that the proposed pre-IPO reorganisation was subject to the receipt of approval from the relevant authorities for the proposed listing.
"As such, the proposed pre-IPO reorganisation will only be implemented upon obtaining the approval of the relevant authorities for the proposed listing, and prior to the registration of the prospectus of MKHOP for the proposed IPO,” said MKH.
Prior to the proposed IPO, MKH said MKHOP proposes to undertake a share split involving the subdivision of every one existing ordinary share in MKHOP into six new MKHOP shares amounting to 662.81 million units worth RM110.47 million.
After completion of the proposed share split, the group said MKHOP proposed to acquire 5.67 per cent stake in PT MKH from Metro Kajang (Oversea) Sdn Bhd and PT Hikmat Aliran Sukses for RM53.52 million through the issuance of 44,23 million new MKHOP shares to the vendors at an issue price of RM1.21.
MKHOP also would acquire the entire equity interest in PT SPS from MKH Plantation Sdn Bhd, Ivakijaya Sdn Bhd, and PT Hikmat for a purchase consideration of RM27.86 million to be satisfied via the issuance of 23.03 million new MKHOP shares to the vendors at an issue price of RM1.21.
Upon completion of the proposed share split, proposed acquisition of PT MKH and PT SPS, MKHOP proposes to undertake the proposed capitalisation whereby PT MKH would novate an amount owing to Metro Kajang (Oversea) Sdn Bhd of RM54.97 million to MKHOP.
"The proceeds to be raised from the proposed offer for sale will accrue entirely to MKH Group and is proposed to be utilised for repayment of loans and borrowings and to defray expenses relating to the proposed offer for sale,” MKH said.
It added that the exact quantum of proceeds that may be raised by MKH group from the proposed offer for sale would depend on the offer price and the actual number of the offer shares placed and the exact details of the utilisation of such proceeds have not been determined at this juncture.
Upon completion of the proposed pre-IPO reorganisation, MKH together with Metro Kajang (Oversea) and MKH Plantation will collectively hold 758.80 million MKHOP shares, representing 94.4 per cent equity interest in MKHOP.
MKHOP proposed to be admitted to the official list of the Main Market and undertake the listing of and quotation for its entire enlarged share capital of 220 million issue shares on the Main Market upon completion of the proposed IPO. - Bernama