In the end, the offer by Kuala Lumpur Kepong Berhad wasn’t enough for shareholders of palm oil producer MP Evans (MPE). The offer has now lapsed, having received acceptances only equivalent to 13 per cent of the issued share capital of the target, and despite being pitched at a huge premium to the prevailing share price.
The board welcomed the rejection of the offer, which it thought undervalued the company’s portfolio of plantations. “The successful growth to date has led to the board’s recently stated intention to increase dividends substantially,” said chairman Peter Hadsley-Chaplin in a statement to the market. “The board thanks our shareholders for their support and for their belief in the continuing successful execution of our growth strategy.”
The share price rose nearly 30 per cent on the day the news was released, but was still down in the month of December from the deal-inflated price.
