MP Evans gets shareholder support for KLK offer rejection

Indonesian palm oil plantation owner MP Evans has received “immediate and unequivocal” support from just under 41% of its shareholders for its rejection of Kuala Lumpur Kepong’s sweetened offer for the company.

On Tuesday, KLK upped its offer for MP Evans to 740p per share in cash from 640p, valuing the group at around £415.4m.

The offer price represents a premium of around 74% to the closing price of MP Evans on 24 October, which was the last business day before the commencement of the offer period.

However, MP Evans rejected the offer on the basis that it “very substantially undervalues the company, its unique position and its future growth potential”.

The company said on Wednesday that the revised offer “still does not reflect the substantial combined value of the majority-owned estates, plantation associates, smallholder co-operative schemes and Malaysian property assets of the MP Evans group”.

Chairman Peter Hadsley-Chaplin said: “KLK continues to fail to recognise the true value of the company and its unique position within its industry. MP Evans is worth very substantially more than 740p per share. The board's view in this regard is corroborated by the early and unequivocal support of a large proportion of our shareholder base. Shareholders' best interests are served by rejecting this offer."

At 1530 GMT, MP Evans shares were up 3% to 691.50p.