Offer to sell 57% in Unico-Desa

30 Oct 2007

PETALING JAYA: Unico-Desa Plantations Bhd's major shareholders have offered to sell a 57% stake in the oil palm plantation group.

Under listing requirements, the disposal would trigger a mandatory general offer for all shares in Unico-Desa should a single party take up the entire chunk of shares.

Consequently, merchant bankers said there was a likelihood of Unico-Desa being taken private in such an event.

The 57% stake are from three parties – Unico Holdings Bhd, Teoh Hock Chai and Dr Yeong Yue Chai. Teoh and Yeong are directors of Unico Holdings as well as Unico-Desa.

News of Unico-Desa shares being offered for sale en bloc appeared to have given the company's share price a lift yesterday. The counter jumped to a record high of 96.5 sen before finishing up 2.5 sen at 94 sen. The stock has gained 40.1 sen, or 74%, year-to-date. The company's market capitalisation stood at about RM830mil yesterday.

IOI Corp Bhd executive chairman Tan Sri Lee Shin Cheng said the group would consider the Unico-Desa offer and also look for bigger plantation companies to acquire.

CIMB Research said that with Unico-Desa's oil palm plantations located close to the estates of other bigger players such as IOI Corp and Asiatic Development Bhd, the big planters would be keen to acquire the majority stake in Unico-Desa “if the price is right''.

Unico-Desa has been hogging the limelight in the last two months over a dispute involving its parent company Unico Holdings' 29.3% shareholding in the oil palm plantation group.

The bone of contention is opposition by former director Tan Kai Hee, who was not re-elected at the AGM last month, to the company's plan to undertake a capital reduction exercise, which would be followed by the distribution of Unico-Desa shares to some 22,200 Unico shareholders.

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