Kulim ups NBPOL stake

Business, Normal

The National, Friday June 21st, 2013

 THE board of the New Britain Palm Oil Ltd (NBPOL) announced yesterday its largest shareholder will acquire another 20% stake for RM812.3 million (K569 million). 

Kulim (Malaysia) Berhad has offered to buy the additional 20% stake in NBPOL which would increase its shareholding to 68.97%.

Kulim already has a 50% stake in the oil palm manufacturer.

According to The Star Kuala Lumpur: “Kulim intended to make a conditional partial cash offer for up to 30 million NBPOL shares or 20% stake at £5.50 (K18.71) a share.”

The newspaper said the corporate exercise was via a conditional partial offer to shareholders on the shares listed on the London Stock Exchange and the Port Moresby Stock Exchange.

“Assuming the partial offer is fully accepted, the company will increase its equity stake in NBPOL from 48.97% to 68.97%, resulting in NBPOL becoming a subsidiary of Kulim.

“NBPOL has been a significant contributor to the Kulim group’s plantation earnings in the past, and the partial offer will enable Kulim to capture a larger share of NBPOL’s financial results upon consolidation.

“Given NBPOL’s scale of operations and the maturity profile of its plantation estate, Kulim’s board believes that the proposed acquisition will contribute positively to Kulim’s future earnings and enhance shareholder value in the long term.”

Meanwhile, NBPOL has not received any formal notification of the proposed partial offer at the time of the announcement.

NBPOL board will make further announcements on the partial offer following the release of formal offer documentation by Kulim. –  The Star