Batu Kawan Bhd, through its wholly owned subsidiary Whitmore Holdings, has agreed to acquire a 47.7% stake in MKH Holdings Bhd at RM2.00 per share, totaling RM549.8 million, which triggered a mandatory general offer (MGO) for the remaining MKH shares [1, 2, 3, 4]. MKH Holdings owns a 65.3% stake in MKH Oil Palm (East Kalimantan) Bhd, which Batu Kawan plans to fully acquire following the MKH acquisition, at an offer price of RM0.6478 per share [1, 3, 4].
Chen Choy & Sons Realty, a family-owned private firm that directly and indirectly holds about 40% of MKH Holdings shares and a small stake in MKH Oil Palm, entered unconditional and conditional share purchase agreements with Whitmore Holdings as part of the acquisition deal [5, 1, 2, 4]. Batu Kawan’s aim is to expand its property development and plantation portfolios by leveraging MKH’s landbank and project management expertise [3, 4]. Batu Kawan has also stated that if it acquires at least 90% of MKH shares, it intends to privatize MKH [1, 3, 4].
MKH Holdings’ shares surged more than 90%, rising from RM0.915 on May 14 to over RM1.77 within four trading days, before trading was suspended prior to the takeover announcement [5, 1, 6, 7]. The share price was RM1.66 per share with a market capitalization near RM974 million just before suspension on May 19 [5, 7, 8, 9]. MKH Oil Palm shares also rose sharply, hitting RM0.72 on May 16 before pulling back to RM0.66 at suspension, with a market cap of about RM675 million [5, 1, 7]. Batu Kawan’s shares closed at RM20.88 on May 19, with an RM8.34 billion market cap [5, 1, 7].
MKH Holdings reported net assets per share of RM3.25 at the end of 2025, with net profit of RM112.86 million for FY2025, despite revenue declining from RM1.06 billion in FY2023-24 to RM953.27 million in FY2025 [1]. MKH Oil Palm owns 18,205 hectares of plantations in East Kalimantan, Indonesia, with assets valued over RM270 million and net profit rising to RM79.78 million in FY2025 [1].
As of May 18, MKH Holdings and Chen Choy & Sons Realty denied a binding agreement existed but acknowledged ongoing discussions with external parties. “Its major shareholder Chen Choy & Sons Realty company periodically meets with external parties but no binding agreement or final terms have been reached,” MKH said [5, 6, 7, 8, 9]. However, by May 19-21 Batu Kawan had signed share purchase agreements with Chen Choy & Sons Realty and related parties for MKH and MKH Oil Palm shares and announced the acquisition and integration plans [1, 2, 3, 4].
Batu Kawan’s definitive share purchase agreements are structured to gain control over MKH and MKH Oil Palm, with potential delisting if majority ownership thresholds are met [4]. The companies’ trading suspensions began on May 19 pending the announcement of these major deals [5, 7, 8, 9].
