by 
“Batu Kawan acquires 47.7% stake in MKH for RM549.8 million and launches RM2-per-share takeover offer that could lead to privatisation.”
Kuala Lumpur, 21th May 2026, 2.30pm – Batu Kawan Berhad is moving to acquire control of MKH Berhad in a deal valued at up to RM1.15 billion, marking one of the largest corporate exercises in Malaysia’s property sector this year.
The acquisition will be carried out through Batu Kawan’s wholly-owned subsidiary Whitmore Holdings Sdn Bhd, which has agreed to purchase a combined 47.7% stake in MKH from members of the Chen family and related entities.
RM549.8 million stake acquisition triggers MGO
Under the agreements, Whitmore will acquire:
- A 29.6% stake for RM340.9 million
- An additional 18.1% stake for RM208.9 million
Both transactions are priced at RM2 per share, valuing the combined stake purchase at RM549.8 million.
The acquisition triggers a mandatory general offer (MGO) for the remaining shares in MKH at the same RM2 offer price.
Batu Kawan said it intends to privatise MKH should its shareholding exceed the 90% threshold following the offer exercise.
Expansion into property and plantation assets
The group said the acquisition aligns with its strategy to strengthen recurring earnings and expand its operational scale across both the property development and plantation sectors.
Batu Kawan currently owns a 48.38% stake in Kuala Lumpur Kepong Berhad.
The enlarged group is expected to benefit from:
- MKH’s development expertise
- Existing landbank
- Project management capabilities
- Plantation assets in Indonesia
According to the filing, the deal would also expand Batu Kawan’s plantation footprint in East Kalimantan, Indonesia, enabling synergies through:
- Shared agronomic expertise
- Sustainability initiatives
- Supply chain optimisation
MKH Oil Palm takeover implications
The exercise also involves the acquisition of a 3.9% stake in MKH Oil Palm (East Kalimantan) Bhd.
Since MKH and its subsidiaries collectively own 65.3% of MKH Oil Palm, Batu Kawan would be required to undertake a mandatory offer for MKHOP once the MKH offer becomes unconditional. The offer price for MKHOP has been set at 64.78 sen per share.
However, Batu Kawan said it intends to maintain MKH Oil Palm’s listing status on Bursa Malaysia.
Offer represents strong premium
The RM2 offer price represents:
- A 20.5% premium to MKH’s last traded price of RM1.66
- A 37.3% to 57.2% premium against its historical VWAP range
The offer also implies:
- Price-to-earnings ratio (PER): 12.9x
- Price-to-book (PB): 0.6x
By comparison, Batu Kawan noted selected peers trade at:
- Average PER: 7.1x
- Average PB: 1.1x
MKH shares surged ahead of announcement
MKH shares had rallied sharply prior to the announcement, surging more than 90% over four trading sessions.
The stock climbed from 91.5 sen to a high of RM1.73, before closing at RM1.66, valuing the company at approximately RM973.7 million.
Meanwhile, shares in Batu Kawan last traded at RM20.88, giving the group a market capitalisation of around RM8.34 billion.
The proposals are expected to be completed by the second half of 2026.
Join The Discussion