Dec 13 2006
Singapore-listed palm oil refiner Wilmar International (SIN : F34) plans to bid for Malaysian palm oil producer PPB Group (KLSE : PPB, stock-code : 4065), which the market values at $1.6 billion, a source close to the deal said on Wednesday.
Both companies are linked to the family of Malaysian billionaire Robert Kuok. The family is the major shareholder of PPB Group and Kuok’s nephew, Kuok Khoon Hong, is chairman and a major shareholder of Wilmar. Wilmar Holdings, which owns 82 percent of Wilmar International, was co-founded in 1991 by Kuok Khoon Hong. Wilmar Holdings’ other major shareholders include U.S.-listed Archer Daniels Midland (NYSE : ADM, quote).
The source told Reuters Wilmar was expected to offer cash and shares for the Kuok family’s stake in PPB, which would trigger a mandatory bid for the rest of the company. The family owned 39.58 percent of PPB Group and Kuok-controlled firm Kerry Group another 5.94 percent as of March 2006, according to Reuters data. “It will likely be a cash and stock offer,” the source said. No other details were available. Shares in Wilmar, PPB Group and PPB’s listed subsidiary, PPB Oil Palms Bhd (KLSE : PPB, stock-code : 6823), were all suspended from trading on Wednesday, pending an announcement.
As expected, the palm oil plantation companies have started to either consolidate, expand or find their own respective partners in face of the recent mega mergers of Kumpulan Guthrie Berhad (GUTHRIE : stock-code 3131), Sime Darby Berhad (SIME : stock-code 4197) and Golden Hope Plantations Berhad (GHOPE : stock-code 1953. The most recent being IOI Corp Berhad (IOICORP : stock-code 1961) acquisition of Pan Century Group for RM423 million.
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December 13th, 2006 by financetwitter
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