Kuala Lumpur Kepong Berhad (KLSE:KLK) proposed to acquire 56.2% stake in IJM Plantations Berhad (KLSE:IJMPLNT) from IJM Corporation Berhad (KLSE:IJM) for MYR 1.5 billion on June 9, 2021. As per the terms of the agreement, Kuala Lumpur Kepong Berhad shall acquire 495 million shares in IJM Plantations Berhad at MYR 3.1 per share. Kuala Lumpur Kepong Berhad (KLSE:KLK) signed a conditional share sale and purchase agreement to acquire 56.2% stake in IJM Plantations Berhad (KLSE:IJMPLNT) from IJM Corporation Berhad (KLSE:IJM) on June 11, 2021. In the event, Kuala Lumpur Kepong Berhad receives valid acceptances of not less than 9/10 in the nominal value of the shares on or before the closing date, Kuala Lumpur Kepong Berhad within four months of the date of the take-over offer, acquire the remaining shares in IJM Plantations Berhad. Post-closing, Kuala Lumpur Kepong Berhad intends to maintain the listing status of IJM Plantations Berhad. The Offeror confirms that it has sufficient financial resources to satisfy full acceptance of the Offer. The Offeror also confirms that the Offer will not fail due to insufficient financial capability, and that every Holder who wishes to accept the Offer will be paid fully in cash.

The transaction is subject to the approvals of the Board of Directors and shareholders of both Kuala Lumpur Kepong Berhad and IJM Corporation Berhad, approvals or consents of the lenders of IJM and Kuala Lumpur Kepong Berhad. The Board of IJM Plantations Berhad recommended its shareholders to vote for the transaction. The offer is not conditional on minimum level of acceptances. The offer shall be terminated on June 11, 2021 if there is no written confirmation, and the share purchase agreement is not signed. As of August 26, 2021, transaction is approved by the shareholders of IJM Corporation Berhad. As of August 27, 2021, transaction is approved by the shareholders of Kuala Lumpur Kepong Berhad. As of August 30, 2021, transaction become unconditional. The transaction is expected to close within four market days from August 30, 2021. The transaction is expected to be completed by September 6, 2021.

AmInvestment Bank Berhad and Mercury Securities Sdn Bhd acted as financial advisors and Tricor Investor & Issuing House Services Sdn Bhd acted as registrar for IJM Corporation. RHB Investment Bank Berhad acted as financial advisor for Kuala Lumpur Kepong Berhad. Kenanga Investment Bank Berhad acted as fairness opinion provider for non-interested Directors and shareholders of IJM Plantations.

Kuala Lumpur Kepong Berhad (KLSE:KLK) completed the acquisition of 56.2% stake in IJM Plantations Berhad (KLSE:IJMPLNT) from IJM Corporation Berhad (KLSE:IJM) on September 6, 2021.