KUALA LUMPUR (Oct 27): Shareholders of UK-listed MP Evans Group Plc reject Kuala Lumpur Bhd's (KLK) unsolicited takeover offer as the acquisition was seen as undervaluing the company.

Plantation group KLK plans to buy plantation and real estate entity MP Evans' entire stake for £359.3 million (about RM1.8 billion) or 640 pence a share in an all-cash deal. MP Evans owns oil palm plantations in Indonesia and Malaysia.

MP Evans said in a statement today its shareholders representing an aggregate 54.72% of the company had rejected KLK's offer.

"The board, having considered the offer together with its financial adviser Rothschild, has no hesitation in unanimously concluding that the offer is wholly inadequate and very substantially undervalues the company, its unique position and its future growth potential.

"The board is pleased to announce that it has received the immediate and unequivocal support of shareholders representing in aggregate 54.72% of the issued share capital of the company. On the basis of these letters of intent to reject the offer which have been received from shareholders holding a majority of the shares in the company, the offer cannot succeed and will fail," MP Evans said.

KLK had not responded via a statement to Bursa Malaysia at the time of writing following MP Evans' statement.

Earlier, KLK told Bursa Malaysia that its offer was "highly attractive" for MP Evans shareholders. KLK said its offer was a "compelling value proposition with a high degree of certainty at a substantial premium to the current share price" of MP Evans.

As such, KLK said its offer provided MP Evans shareholders the opportunity to realise the value of their investment in MP Evans — the shares, which had seen low trading liquidity.

At Bursa Malaysia today, KLK shares fell four sen or 0.2% at 11:53am to RM24.16 for a market capitalisation of RM25.79 billion. In the UK yesterday, MP Evans shares closed 14.5 pence higher at 624.5 pence for a market value of £348.1 million.