PETALING JAYA: Batu Kawan Bhd
is set to emerge as the controlling shareholder of MKH Bhd after agreeing to acquire up to a 47.7% stake in the property and plantation group at RM2 per share, in a deal worth about RM549.8mil, triggering a mandatory general offer (MGO) for the remaining shares.
The acquisition also gives Batu Kawan indirect control over MKH Oil Palm (East Kalimantan) Bhd (MKHOP), in which MKH holds a 65.3% stake, potentially leading to a downstream MGO for MKHOP as well.
In a filing with Bursa Malaysia, Batu Kawan said its wholly-owned subsidiary Whitmore Holdings Sdn Bhd had entered into unconditional share sale agreements with Chen Choy & Sons Realty Sdn Bhd (CCSR) to acquire a 29.6% stake in MKH and a 3.3% stake in MKHOP.
Moreover, Whitmore entered into separate unconditional agreements with Tan Sri Chen Kooi Chiew @ Cheng Ngi Chong, Tan Sri Chen Lok Loi, Datuk Chen Fook Wah, Lotus Way Sdn Bhd, Liberty Alliance (M) Sdn Bhd and Activest Sdn Bhd to acquire an additional 0.5% stake in MKHOP.
Whitmore signed conditional agreements with the same parties to acquire a further 18.1% stake in MKH.
CCSR directly holds a 3% stake in MKHOP.
This privately held Chen family vehicle has direct and indirect interests of 17.8% and 23.2%, respectively, in MKH, while other Chen family members also own stakes in MKH, with indirect interests exceeding 40%.
The RM2 offer price represents a premium of 20.5% over MKH’s last traded price of RM1.66 prior to the suspension of its shares on May 20.
It also represents premiums of between 37.3% and 57.2% over the stock’s five-day to 12-month volume weighted average prices (VWAP).
The acquisition values MKH at an implied price-to-earnings (PE) multiple of 12.9 times based on its financial year ended Sept 30, 2025 earnings, and a price-to-book (PB) multiple of 0.6 times.
For MKHOP, the RM0.6478 per share acquisition price was at a slight discount of 1.9% to its last traded price of RM0.66, and represents a discount of between 3.53% to its five-day VWAP and a 2.71% premium to its 12-month VWAP.
The deal values MKHOP at an implied PE multiple of 8.2 times and PB multiple of 1.1 times.
Batu Kawan said it does not intend to maintain MKH’s listing status if it and its persons acting in concert end up holding 90% or more of the company following the MGO, in which case it will seek to delist MKH from the Main Market of Bursa Malaysia.
