Tradewinds Jumps Most Since 2007 on Buyout: Kuala Lumpur Mover

Tradewinds (Malaysia) Bhd. (TWI), a palm oil and rice producer, advanced the most in more than five years in Kuala Lumpur stock trading after receiving a takeover offer from companies linked to billionaire Syed Mokhtar Al-Bukhary.

The stock surged 15 percent to 8.88 ringgit at 11:18 a.m. local time, poised for its steepest rise since June 22, 2007. It’s the biggest gainer today in the FTSE Bursa Malaysia Top 100 Index (FBM100), which added 0.1 percent. Today’s jump pares Tradewinds Malaysia’s loss this year to 12 percent, compared with a 9.2 percent gain in the benchmark FTSE Bursa Malaysia KLCI Index. (FBMKLCI)

Perspective Lane (M) Sdn., Kelana Ventures Sdn., Seaport Terminal (Johore) Sdn. and Acara Kreatif Sdn., which collectively own 45.1 percent of Kuala Lumpur-based Tradewinds Malaysia, jointly offered 9.30 ringgit a share for the rest of the company they don’t already own, according to a stock exchange filing on Dec. 24. That’s 20 percent more than the last-traded price of 7.75 ringgit on Dec. 21, before trading was halted for the announcement.

“The offer price is attractive,” Ang Kok Heng, who manages the equivalent of $425 million as chief investment officer at Phillip Capital Management Sdn., said by phone in Kuala Lumpur today. “Investors can cash out and use the money to invest in other plantation stocks.”

Compulsory Buyout

Syed Mokhtar, 61, controls DRB-Hicom Bhd. (DRB) and is Southeast Asian nation’s seventh richest man, with assets totaling $3.3 billion, according to a Forbes magazine ranking in March.

Tradewinds Malaysia, through its Tradewinds Plantation Bhd. (TWPB) unit, manages 126,985 hectares of oil-palm plantation in the country, according to its website. It also owns 73 percent of Padiberas Nasional Bhd. (PNL), which supplies 45 percent of the nation’s rice, data from the website show.

Under Malaysian law, the buyers will be required to purchase subsidiaries Tradewinds Plantation and Padiberas Nasional if they raise their stake in Tradewinds Malaysia by more than 2 percent over a six-month period, according to the statement.

They would offer 4.03 ringgit per share for Tradewinds Plantation, lower than the pre-suspension price of 4.23 ringgit, and 3.25 ringgit apiece for Padiberas, which last traded at 3.31 ringgit on Dec. 21.

Tradewinds Plantation slid 6.2 percent to 3.97 ringgit today, poised for its steepest decline since May 17, while Padiberas dropped 1.5 percent to 3.26 ringgit, the biggest drop in a month.

To contact the reporter on this story: Gan Yen Kuan in Kuala Lumpur at ykgan@bloomberg.net

To contact the editor responsible for this story: Allen Wan at awan3@bloomberg.net

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