Batu Kawan Bhd, through its wholly-owned subsidiary Whitmore Holdings Sdn Bhd, has agreed to acquire a combined 47.7% stake in MKH Bhd from the Chen family for RM549.8 million, or RM2 per share.
Following the acquisition, Batu Kawan will launch a mandatory general offer (MGO) for the remaining shares in MKH at RM2 per share. The group said it intends to privatise MKH if it manages to secure at least a 90% stake in the company.
The acquisition also includes a 3.9% stake in MKH Oil Palm (East Kalimantan) Bhd (MKHOP).
MKH and its subsidiaries currently hold a 65.3% stake in MKHOP. Once the MGO for MKH becomes unconditional, Batu Kawan will also be required to undertake an MGO for MKHOP at 64.78 sen per share. However, the group intends to maintain MKHOP’s listing status on Bursa Malaysia.
According to Bursa Malaysia filings, Whitmore entered into unconditional and conditional share sale agreements with several members of the Chen family, investment vehicle Chen Choy & Sons Realty Sdn Bhd, and related parties.
The acquisitions include a 29.6% stake in MKH valued at RM340.9 million and an additional 18.1% stake worth RM208.9 million, both priced at RM2 per share.
The proposed MGO for MKH could cost Batu Kawan up to RM603.8 million, which will be financed through bank borrowings. In total, the group may spend up to RM1.15 billion to complete the privatisation exercise.
The RM2 offer price represents a 20.5% premium over MKH’s last closing price of RM1.66, as well as a premium ranging between 37.34% and 57.22% compared with the stock’s historical volume-weighted average prices over different periods.
Batu Kawan said the acquisition would strengthen and expand its earnings base in both the property development and plantation sectors.
The group added that the enlarged business could unlock operational synergies by leveraging MKH’s landbank, project management expertise and plantation assets in East Kalimantan, Indonesia.
The proposals are expected to be completed in the second half of 2026.
Shares of MKH last closed at RM1.66, valuing the company at RM973.7 million, while Batu Kawan ended at RM20.88 with a market capitalisation of RM8.34 billion.
