KLK fails in second bid to take over MP Evans

PETALING JAYA: Kuala Lumpur Kepong Bhd (KLK) has failed in its second attempt to take over MP Evans Group PLC, with only 13.2% acceptances for its revised 740 pence (RM40.84) a share offer for the UK-based plantation firm.

In a filing with Bursa Malaysia yesterday, KLK said its wholly-owned subsidiary KL-Kepong International Ltd (KLKI) did not receive the 50% acceptance by Dec 21, 1pm (London time).

“As this acceptance condition has not been satisfied, the offer has lapsed with immediate effect and accordingly, the offer is no longer capable of further acceptance and accepting MP Evans shareholders and KLK and KLKI have ceased to be bound by such acceptances,” it said. To recap, KLK initially made an offer at 640 pence per share, which was rejected by shareholders earlier in October. Last month, KLK revised its offer price to 740 pence per share.

The revised offer values MP Evans at about £415.4 million and represents a premium of 74% to the closing price of 426.25 pence per MP Evans share on Oct 24, 2016. It also represents a premium of 16% to the initial offer price of 640 pence per share.

MP Evans assets include a majority interest in 25,400 planted hectares and a substantial minority interest in 21,800 planted hectares of oil palm plantations in Indonesia and US$46 million (RM205.6 million) worth of Malaysian assets and investments.