MP Evans rejects sweetened offer from KLK

Indonesian palm oil plantation owner MP Evans has rejected a sweetened takeover offer from Kuala Lumpur Kepong.

KLK upped its offer for the company to 740p per share in cash from 640p, valuing the company at around £415.4m.

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

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.

MP Evans said it will make a further announcement in relation to the revised offer and urged its shareholders to take no action.

Earlier, KLK said it continues to believe there is a strategic merit in synergising the operations of MP Evans with KLK's from a geographical and capabilities perspective.

“The management of MP Evans will also have opportunities to develop their careers within the larger organisation. Together, KLK and MP Evans should establish best practices for the further growth of both companies and enable the enlarged group to capitalise on economies of scale in the oil palm sector.”

At 1252 GMT, MP Evans shares were up 11.5% to 698.50p.