Johor Corp offers RM4.10 a share to take Kulim private

PETALING JAYA: Johor Corp has launched a takeover offer for Kulim (Malaysia) Bhd through a selective capital reduction (SCR) and repayment exercise, with an intention to delist Kulim.
The offer price of RM4.10 per share, represents an 80 sen or 24.24% premium against the closing price of RM3.30 on Wednesday.
In a filing with the stock exchange, Johor Corp, which held a 61.87% stake in Kulim as at Oct 28, said the privatisation is due to Kulim’s disposal of a 48.97% stake in New Britain Palm Oil Ltd (NBPOL) for RM2.8 billion in last February.
“Following the disposal of NBPOL, the major assets contributing to the revenue and profitability of the Kulim group comprise its Malaysian oil palm plantations and its investments in E.A. Technique (M) Bhd,” it noted.
The offer is open for the board’s acceptance until 5pm on Nov 20.
Kulim said its non-interested directors will deliberate on the proposed SCR and upon consultation with an independent adviser to be appointed will decide on the next course of action.