Batu Kawan reaches 95.16% stake in MKH, setting up delisting
The offer remains open until Oct 8, with Batu Kawan and Whitmore set to compulsorily acquire shares held by dissenting shareholders.
Batu Kawan Bhd and its wholly owned subsidiary Whitmore Holdings Sdn Bhd, alongside parties acting in concert, controlled 548.85 million shares in MKH Bhd at the Sept 30 market close. The combined holding reached 95.16%, according to Maybank Investment Bank Bhd, clearing the threshold for the property developer’s delisting.
In a statement on behalf of the offerors, Maybank Investment Bank said valid acceptances had reached at least nine-tenths of the nominal value of shares covered by the offer. Batu Kawan and Whitmore will use Section 222(1) of the Capital Markets and Services Act 2007 to acquire the remaining shares compulsorily.
The unconditional mandatory takeover offer closes on Oct 8, after its deadline was extended from Sept 17. Trading in MKH shares will be suspended by Bursa Malaysia Securities after five market days have elapsed from Oct 8. Batu Kawan and Whitmore will then arrange for MKH to pursue withdrawal of its listing.
The transaction began in May with an agreement for Whitmore to buy a combined 47.7% holding from Chen family members. That purchase was priced at RM549.8 million, or RM2 per share.
At RM2 per share, the total cost of taking MKH private was valued at up to RM1.15 billion, including the initial purchase. Kenanga Investment Bank Bhd, MKH’s independent adviser, assessed the cash offer as reasonable but not fair, saying it undervalued the developer’s fair asset worth.
