MARKET DEVELOPMENT
Kulim To Acquire 30 Million NBPOL\'s Issued Shares
Kulim To Acquire 30 Million NBPOL\'s Issued Shares
21/06/2013 (Bernama) - Kulim (Malaysia) Bhd (Kulim) has proposed a partial offer to acquire up to 20 per cent stake or about 30 million shares in its London-listed associate company, New Britain Palm Oil Limited (NBPOL), for of GBP5.50 (approximately RM26.77) per share.
At full subscription, the partial offer will see Kulim increasing its shareholding in NBPOL to 68.97 per cent, from 48.97 per cent currently, thus enabling Kulim to capture a larger portion of NBPOL's financial results upon consolidation as a subsidiary of the group.
"The partial offer will bring positive growth prospect to NBPOL as the latter's scale of operations in Papua New Guinea has been driven by acquisition of several large estates in the recent years, younger palms showing strong yield potentials and commendable average estate yield of fresh fruit bunch (FFB) per hectare.
"NBPOL produced 2.3 million tonnes of FFB in 2012, which translated into an average FFB yield of 23.80 tonnes per hectare," Kulim Chairman Datuk Kamaruzzaman Abu Kassim said in a statement.
He said the proposal to acquire additional shares in NBPOL would be carried out in accordance to the Takeovers Code 1998 of Papua New Guinea.
The group intends to finance the transaction through a combination of internally-generated fund and borrowings, Kamaruzzaman added.
The partial offer would be subject to a minimum acceptance condition in which Kulim would receive sufficient acceptances to hold no less than 50 per cent of NBPOL's issued share capital after the acceptances were processed, said the company.
At full subscription, the cost of acquisition would involve approximately RM812 million while about RM41.71 million for Kulim just to cross the 50 per cent stake in NBPOL.
The successful conclusion of the partial offer would see the group's landholding increase from 49,551 hectares to approximately 184,000 hectares.
"The offer to increase our investment in NBPOL represents a vote of confidence in NBPOL, its board of directors, leadership team and talented employees, as well as, the products and services NBPOL brings to the market.
"The offer also represents a vote of confidence in the growth prospects of Papua New Guinea, the Solomon Islands and the other markets that NBPOL serves," said Kamaruzzaman.
The plantation group said the proposed partial offer was expected to contribute positively to the group's future earnings and enhance shareholder value in the long-term.
Kulim's share resumed trading today at RM3.48, up two sen, with 122,200 shares exchanging hands as at 10.51 am.
At full subscription, the partial offer will see Kulim increasing its shareholding in NBPOL to 68.97 per cent, from 48.97 per cent currently, thus enabling Kulim to capture a larger portion of NBPOL's financial results upon consolidation as a subsidiary of the group.
"The partial offer will bring positive growth prospect to NBPOL as the latter's scale of operations in Papua New Guinea has been driven by acquisition of several large estates in the recent years, younger palms showing strong yield potentials and commendable average estate yield of fresh fruit bunch (FFB) per hectare.
"NBPOL produced 2.3 million tonnes of FFB in 2012, which translated into an average FFB yield of 23.80 tonnes per hectare," Kulim Chairman Datuk Kamaruzzaman Abu Kassim said in a statement.
He said the proposal to acquire additional shares in NBPOL would be carried out in accordance to the Takeovers Code 1998 of Papua New Guinea.
The group intends to finance the transaction through a combination of internally-generated fund and borrowings, Kamaruzzaman added.
The partial offer would be subject to a minimum acceptance condition in which Kulim would receive sufficient acceptances to hold no less than 50 per cent of NBPOL's issued share capital after the acceptances were processed, said the company.
At full subscription, the cost of acquisition would involve approximately RM812 million while about RM41.71 million for Kulim just to cross the 50 per cent stake in NBPOL.
The successful conclusion of the partial offer would see the group's landholding increase from 49,551 hectares to approximately 184,000 hectares.
"The offer to increase our investment in NBPOL represents a vote of confidence in NBPOL, its board of directors, leadership team and talented employees, as well as, the products and services NBPOL brings to the market.
"The offer also represents a vote of confidence in the growth prospects of Papua New Guinea, the Solomon Islands and the other markets that NBPOL serves," said Kamaruzzaman.
The plantation group said the proposed partial offer was expected to contribute positively to the group's future earnings and enhance shareholder value in the long-term.
Kulim's share resumed trading today at RM3.48, up two sen, with 122,200 shares exchanging hands as at 10.51 am.