PETALING JAYA: The major shareholders of Kurnia Setia Bhd, TAS group and Pahang Agriculture Development Board (LKPP), have made an offer to acquire the entire business, including assets and liabilities of the company, for about RM270mil cash.
In a statement yesterday, plantation company Kurnia Setia said following the proposed sale of the business, it would carry out a capital repayment to all the shareholders by way of cancellation of Kurnia Setia shares in issue.
Its shareholders will receive cash of RM2.40 per share while warrant holders will receive 90 sen per warrant.
The offer was made via Kreatif Selaras Sdn Bhd, a special purpose private limited company incorporated for the acquisition.
An official letter has been submitted to the Kurnia Setia board, setting out the details of the offer, which lapses on June 18. Trading in Kurnia Setia shares was halted on June 3 pending this announcement. Trading will resume on Monday.
Kurnia Setia, which owns 14,000ha of oil palm estates in Pahang, last traded at RM2.20 while its warrants closed at 89 sen.
The purchase price of RM270mil is based on the outstanding shares of Kurnia Setia as at yesterday – 101.5 million outstanding shares and 1.8 million outstanding options under Kurnia Setia’s employees share option scheme, translating to cash of RM248mil.
Meanwhile, there are 24.6 million outstanding warrants that would translate to cash of RM22.1mil, assuming none of the warrant holders exercise their warrants between now and the acquisition completion date.
Kurnia Setia warrants have a 10-year exercise/conversion period, maturing on April 20, 2018 and were issued free to subscribers of Kurnia Setia’s rights issue.
TAS group and LKPP hold 30.5% and 22.8% in Kurnia Setia respectively while the remaining shares are held by the public.
Upon completion of the acquisition, the shareholders of Kreatif Selaras, would be LKPP and Transaksi Madani Sdn Bhd which will indirectly hold 22.8% and 77.2% in Kurnia Setia respectively.
(TAS group will be the shareholder of Transaksi upon completion of the deal).
Kreatif Selaras chairman Tengku Tan Sri Meriam Sultan Ahmad Shah said Kurnia Setia’s listing status had not accorded a fair value to the company over the years as a result of the low daily trading volume.
“The acquisition gives minority shareholders an opportunity to exit and realise their investment at RM2.45 per share – that is the RM2.40 offer price and five sen dividend to be paid,” she said.
The company paid an interim dividend of 10 sen per share for its financial year ended Dec 31 and declared a final dividend of five sen per share, payable on Aug 3.
The cash consideration of RM2.40 per share and 90 sen per warrant for the proposed acquisition was arrived at after taking into account the performance of the average market price of Kurnia Setia shares over the past three years and earnings outlook for the company, which is mainly derived from sale of fresh fruit bunches.`
More Recent Palm Oil News
- Palm Oil Prices to Hit $3,000/ton by June, May Reach $3,500/ton on El Nino – Mistry
- Crude Palm Oil Ends up on Bargain-Hunting
- Crude Palm Oil Ends up on Weather Concerns
- Crude Palm Oil Falls With More Tipped Next Week
- Crude Palm Oil Ends Up After Choppy Trade; May Rise More
- Crude Palm Oil Ends Down; Likely Higher Exports Limit Declines
- Crude Palm Oil Ends Off Highs; MYR2,440-MYR2,485/Ton Tipped Wed
- Crude Palm Oil Rises To 1-Week High On Export Demand
- Crude Palm Oil Ends Higher; May Test MYR2,500/Ton N/T
- Crude Palm Oil Rallies To 10-Week High On Tight Supplies
- Crude Palm Oil Ends Down; MYR2,370-MYR2,430/Ton Tipped Friday
- Crude Palm Oil Ends Up; Stockpiles Seen Easing
- Crude Palm Oil Ends Higher; May Rise More
- Crude Palm Oil Higher; Further Gains Likely N/T
- Crude Palm Oil Ends Up On Bargain Hunting; Further Gains Likely Friday
PRO Palm Oil Live Market News
- Malaysian AM Cash Market Prices for Palm Oil – March 11
- Crude Palm Oil (CPO) May Open Lower; Low Stocks Bullish -Kenanga — Market Talk
- Southeast Asia Palm Oil Weather – Mar 10
- European veg oil PM, Palm Oil & Lauric Oil Prices – Mar 10
- European veg oil PM, Soft Oil Prices – Mar 10
- Malaysian PM Cash Market Prices for Palm Oil for March 10
- Table of Malaysia March 1-10 Palm Oil Exports – SGS
- *Malaysia March 1-10 Palm Oil Exports Down 3.7% on Month, SGS Says
- *Malaysia March 1-10 Palm Oil Exports 297,064 Tons, SGS Says
- China Dalian Commodity Exchange Grain Stocks, Mar 10
- China Dalian Grain Futures Closing Prices, Volume
- Malaysian AM Cash Market Prices for Palm Oil – March 10
- Malaysia February CPO Output Down 15% on Month, MPOB Says
- *Malaysia’s February Palm-Oil Exports 1.35 Million Tons; Down 1.25% on Month -MPOB
- *Malaysia’s End-February Palm-Oil Stocks 1.66 Million Tons; Down 14% on Month -MPOB