PETALING JAYA: The RM2 per share takeover offer for MKH Bhd
may leave shareholders short on value, but an independent adviser says accepting it remains the reasonable course.
Kenanga Investment Bank (Kenanga IB) said the mandatory offer by Batu Kawan Bhd, via its wholly-owned subsidiary Whitmore Holdings Sdn Bhd, was “not fair but reasonable”.
Currently, Batu Kawan holds a 58.5% stake in MKH, a property developer and oil palm planter.
Based on a sum-of-parts valuation method, the independent adviser said the RM2 offer represents a discount of RM2.31 or 53.6% to the estimated value of RM4.31 per MKH share.
The offer is also lower than the latest unaudited net asset per MKH share as at end-June 2026 at RM3.27, according to Kenanga IB in its independent advice circular.
However, it pointed out that the offer is “reasonable”, partly because of the fact that MKH shares were relatively illiquid when compared against the FBM KLCI and the Property Index.
In addition, Kenanga IB said there is no alternative offer for MKH. Given that Batu Kawan is the controlling shareholder, it said the prospect of a successful competing take-over offer by a third party may be limited.
“In the absence of an alternative offer, the offer provides an opportunity to the holders to realise their investments in the offer shares for cash at the offer price.”
In the event that Batu Kawan’s intention to achieve more than 90% shareholding in MKH is unsuccessful, Kenanga IB said there can be no assurance that the market price of MKH shares will be maintained at or near the offer price, and the share price may reasonably be expected to revert towards levels more consistent with the prevailing fundamentals and historical trading patterns.
