15th Nov 2016 10:42
LONDON (Alliance News) - Kuala Lumpur Kepong Bhd on Tuesday said it was increasing its takeover offer for palm oil and rubber plantation business MP Evans Group PLC "noting the response of major shareholders to the initial offer".
Shares in MP Evans were up 11% at 698.33 pence on Tuesday morning.
Kuala Lumpur Kepong said the new offer was for 740p per MP Evans share, which, including the entire issued and to be issued share capital, values the company at around GBP415.4 million.
The offer was made through Kuala Lumpur Kepong's wholly-owned subsidiary KL-Kepong International Ltd.
Its previous takeover offer was for 640 pence per share, but additionally MP Evans shareholders would continue to be entitled to the 2.25p interim dividend MP Evans announced for the first half of 2016. This took the total initial offer to 642.25p, which valued MP Evans at around GBP360.5 million.
Kuala Lumpur Kepong on Tuesday said the "increased offer is final and is not capable of being increased".
However, the group said it "reserves the right" to increase the price per MP Evans share payable if there is a public announcement of the existence of a new interested party or the recommendation of an increased offer by Kuala Lumpur Kepong by the MP Evans board.
In late October, MP Evans confirmed it rejected an offer from Kuala Lumpur Kepong on October 13, prompting Kuala Lumpur Kepong to take the offer directly to MP Evans shareholders.
Kuala Lumpur Kepong had said MP Evans shareholders should "have the opportunity to decide on the merits" of its offer.
MP Evans at the time said it concluded "the offer [was] wholly inadequate and very substantially undervalues the company, its unique position and its future growth potential".
In total, shareholders representing around 54.72% of MP Evans' issued share capital had confirmed their intention to reject the offer, MP Evans said in its statement last month.
By Hannah Boland; [email protected]; @Hannaheboland
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