Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Palm oil play <a href="https://www.smartkarma.com/entities/kuala-lumpur-kepong-bhd" target="_blank" data-smartkarma-citation="entities:17039:1" rel="noopener">Kuala Lumpur Kepong (KLK MK)</a> has made an <a href="https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3165328" target="_blank" rel="noopener">Offer</a> for <a href="https://www.smartkarma.com/entities/ijm-corp-bhd" target="_blank" data-smartkarma-citation="entities:16784:1" rel="noopener">Ijm Corp Bhd (IJM MK)</a>'s 56.2% stake in <a href="https://www.smartkarma.com/entities/ijm-plantations-bhd" target="_blank" data-smartkarma-citation="entities:12967:1" rel="noopener">Ijm Plantations (IJMP MK)</a>.
The RM3.10/share Offer price, a 26% premium to last close, values IJMP at RM2.7bn, or US$0.65bn.
Should the transaction conclude - and there appears no reason why it won't - KLK will be obligated to make an unconditional mandatory general offer for all shares in IJMP not held.
The transaction is subject to shareholder approval at EGMs for both IJM Corp and KLK. The SPA is also conditional on the consent from the lenders of IJM Corp and IJMP. 
IJM Corp is required to confirm on or before 5pm on June 11, if it wishes to proceed. IJM Corp said its board is in principle agreeable to finalise the terms and conditions with KLK.
This looks done.
More below the fold.

Palm oil play Kuala Lumpur Kepong (KLK MK) has made an Offer for Ijm Corp Bhd (IJM MK)'s 56.2% stake in Ijm Plantations (IJMP MK).
The RM3.10/share Offer price, a 26% premium to last close, values IJMP at RM2.7bn, or US$0.65bn.
Should the transaction conclude - and there appears no reason why it won't - KLK will be obligated to make an unconditional mandatory general offer for all shares in IJMP not held.
The transaction is subject to shareholder approval at EGMs for both IJM Corp and KLK. The SPA is also conditional on the consent from the lenders of IJM Corp and IJMP. 
IJM Corp is required to confirm on or before 5pm on June 11, if it wishes to proceed. IJM Corp said its board is in principle agreeable to finalise the terms and conditions with KLK.
This looks done.
More below the fold.

Index Rebal/Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal/Special Situations

Chemical Company of Malaysia / Event-Driven

Malaysia-based manufacturer of chemicals and rubber products <a href="https://www.smartkarma.com/entities/batu-kawan-bhd" target="_blank" data-smartkarma-citation="entities:8276:1" rel="noopener">Batu Kawan Bhd (BAK MK)</a> (below shown as either "BAK" or "BKB", interchangeably) agreed to acquire 56.32% of smaller local peer <a href="https://www.smartkarma.com/entities/chemical-company-of-malaysia-berhad" target="_blank" data-smartkarma-citation="entities:1452:1" rel="noopener">Chemical Company of Malaysia (CCM MK)</a> from major shareholders PNB and Amanah Saham. This triggered the requirement to launch a Mandatory Offer for the remaining shareholders at the same price: RM3.10 per CCM share in cash. This acquisition is expected to widen BAK's presence in the chemical manufacturing business.  CCM's product portfolio includes polymer chemicals and calcium nitrate (which is used for latex coagulation - from liquid to solid state) which are primarily supplied to the glove manufacturing industry. The Deal values the Target company at a market cap of RM520mn (~US120mn). CCM's shares closed at RM2.99 today. More below the fold. <hr>For more information about M&amp;A rules, regulations, and practices in Malaysia, please refer to <a href="https://www.smartkarma.com/insights/quiddity-malaysia-m-a-guide-2019" target="_blank" data-smartkarma-citation="insights:30129" rel="noopener">Quiddity Malaysia M&amp;A Guide 2019</a>

Malaysia-based manufacturer of chemicals and rubber products Batu Kawan Bhd (BAK MK) (below shown as either "BAK" or "BKB", interchangeably) agreed to acquire 56.32% of smaller local peer Chemical Company of Malaysia (CCM MK) from major shareholders PNB and Amanah Saham. This triggered the requirement to launch a Mandatory Offer for the remaining shareholders at the same price: RM3.10 per CCM share in cash. This acquisition is expected to widen BAK's presence in the chemical manufacturing business.  CCM's product portfolio includes polymer chemicals and calcium nitrate (which is used for latex coagulation - from liquid to solid state) which are primarily supplied to the glove manufacturing industry. The Deal values the Target company at a market cap of RM520mn (~US120mn). CCM's shares closed at RM2.99 today. More below the fold. For more information about M&amp;A rules, regulations, and practices in Malaysia, please refer to Quiddity Malaysia M&amp;A Guide 2019 

Batu Kawan (BAK MK)'s Mandatory Offer for CCM: Low Risk Risk Arb

Malaysia

Batu Kawan Berhad is an investment holding company. Through its subsidiaries, the Company manufactures chemicals and methyl chloride. Batu Kawan also provides general transport and haulage services, leases storage warehouse, and provides money lending services.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Batu Kawan Bhd (BAK MK)

IJM Plantations' Potential MGO From KLK

This appears a done deal. Assuming a mid-August completion, I estimate this is trading at a gross/annualised spread of 1.9%/10.7%. That looks okay....

David Blennerhassett

Batu Kawan (BAK MK)'s Mandatory Offer for CCM: Low Risk Risk Arb

Chemical mfr and plantation business BKB (aka BAK) announced a deal to buy out a majority stake in glove industry chemical mfr CMM. That triggers...

Janaghan Jeyakumar, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)