KUALA LUMPUR: Batu Kawan Bhd’s (BKB) wholly owned subsidiary, Whitmore Holdings Sdn Bhd, is undertaking a RM575.2-million strategic acquisition and takeover exercise involving MKH Bhd and MKH Oil Palm (East Kalimantan) Bhd (MKHOP).
In a filing with Bursa Malaysia, BKB said the exercise comprises RM366.3 million in completed acquisitions, including a 29.6 per cent equity interest in MKH and a 3.9 per cent stake in MKHOP, as well as a proposed RM208.9 million acquisition of an additional 18.1 per cent stake in MKH.
BKB said the exercise also includes a proposed conditional mandatory takeover offer for the remaining shares in MKH and potentially MKHOP.
Upon completion of the acquisitions, Whitmore’s direct stake in MKH will rise from nil to 29.6 per cent, while its holding in MKHOP will increase to 3.9 per cent. If the proposed acquisition proceeds, its shareholding in MKH will further increase to 47.7 per cent.
Batu Kawan said the exercise is expected to broaden the group’s earnings base and operational scale by combining its financial strength and plantation expertise with MKH Group’s established property development and plantation businesses in East Kalimantan, Indonesia.
“The enlarged group will be able to pursue synergistic initiatives aimed at achieving greater economies of scale, cost synergies through savings in capital and operating expenditure, access to a larger pool of talent and expertise, and the adoption of best practices currently used by each group.
“The group said the enlarged entity would also be able to leverage MKH’s landbank, project management capabilities and construction ecosystem, while expanding Batu Kawan’s plantation footprint in East Kalimantan, Indonesia,” it added.
BKB said, barring unforeseen circumstances and subject to the relevant approvals, the proposals are expected to be completed by the second half of 2026.
It said Maybank Investment Bank Bhd is the principal adviser to BKB for the proposals and the proposed mandatory takeover offer. – BERNAMA
