Wednesday June 4, 2008 MYT 3:49:57 PM
The Star Online

Kulim buys another 2.53m Sindora shares

KUALA LUMPUR: Kulim (Malaysia) Bhd, which saw its offer to acquire the remaining 28.96% or 27.81 million shares hit a snag, went into the open market to acquire 2.53 million shares.

A filing with Bursa Malaysia showed Kulim bought 2.03 million shares on May 29 and 507,000 shares the next day. The share price closed at a 52-week high of RM2.44 on May 29 and dipped to RM2.37 the next day.

After the acquisition of the shares, representing a 2.64% stake, Kulim’s shareholding increased to 70.43 million shares or 73.37%.

Under the takeover offer, Kulim had offered RM1.72 per Sindora share. However, the minority shareholders did not take up the offer, as Sindora’s adjusted net asset per share would be RM2.72 based on the market value of its plantation assets of RM201mil.

Affin Investment Bank, the independent adviser for Sindora shareholders, had in late May advised the latter to reject Kulim’s offer as the Sindora’s net assets did not capture any enhancement from a revaluation of its plantation assets.