MP Evans re­jects KLK’s new of­fer

> Board says re­vised bid ‘very sub­stan­tially’ un­der­val­ues com­pany, its unique po­si­tion and fu­ture growth po­ten­tial

The Sun (Malaysia) - - SUNBIZ -

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.

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