MP Evans rejects KLK’s new offer
> Board says revised bid ‘very substantially’ undervalues company, its unique position and future growth potential
PETALING JAYA: Kuala Lumpur Kepong Bhd’s (KLK) revised 740 pence a share offer for the entire issued share capital of MP Evans Group PLC has been rejected by the UK-based plantation company.
MP Evans said it has considered the revised offer together with its financial adviser Rothschild and unanimously rejected it on the basis that it “very substantially” undervalues the company, its unique position and its future growth potential.
“MP Evans will make a further announcement in relation to the revised offer. In the meantime, MP Evans shareholders are strongly urged to take no action in relation to the revised offer and not to sell their MP Evans shares,” it said in a statement yesterday.
It said Rothschild has considered the commercial assessment of the directors in providing financial advice on the revised offer to the board of MP Evans. KLK’s revised offer values MP Evans at about £415.4 million (RM2.25 billion).
Meanwhile, in a separate announcement, KLK said its net profit for the fourth quarter ended Sept 30, 2016 more than doubled to RM375.06 million from RM186.29 million a year ago.
Revenue rose 15.54% to RM4.54 billion from RM3.93 billion a year ago.
The improved results were driven by plantations and properties divisions which posted 20.1% and 81.2% increase in profits respectively during the quarter. The manufacturing and oleochemical divisions incurred losses of RM6.2 million and RM11.3 million respectively.
For the full year ended Sept 30, 2016 (FY16), net profit rose 83.03% to RM1.59 billion from RM869.91 million a year ago while revenue rose 20.92% to RM16.51 billion from RM13.65 billion a year ago.
KLK recommended a final single-tier dividend of 35 sen per share in respect of FY16 to be paid on March 14, 2017, subject to shareholders’ approval. The entitlement date is Feb 22, 2017.