Business

Kulim to raise stake in London-listed New Britain

June 20, 2013

Malaysian plantation firm Kulim (M) Bhd said it plans to raise its interest in London-listed New Britain Palm Oil Ltd, offering RM812 million in cash for a 20 per cent stake.

The partial offer, which would increase Kulim's interest in New Britain to just under 70 per cent, was priced at 5.50 pounds a share -- 14.6 per cent higher than the company's last close -- and represents a price-to-book ratio of 1.31 times.

"New Britain has been a significant contributor to the Kulim group's plantation earnings in the past, and hence the partial offer will enable Kulim to capture a larger share of the company's financial results upon consolidation," Kulim said in a stock exchange filing.

The purchase, which will be financed by a combination of internal funds and loans, was expected to be completed in the second half of 2013, Kulim added.

Shares of Kulim were suspended on Wednesday and will resume trading at 0630 GMT. The stock last closed at RM3.50 a share. - Reuters, June 20, 2013.

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