Kangaroo Island Plantation (ASX:KPT) share price rockets 7% on takeover bid

The Kangaroo Island Plantation Timbers Ltd (ASX: KPT) share price is surging today after the company was subject to a complete takeover bid.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Kangaroo Island Plantation Timbers Ltd (ASX: KPT) share price is surging today after the company was subject to a complete takeover bid from an investment fund called Samuel Terry Asset Management.

The Kangaroo Island Plantation share price is up 7.6% to $1.13 per share as a result.

Kangaroo Island Plantation is a logging and timber business located on Kangaroo Island off the coast of South Australia. The company has been subject to multiple takeover and land-acquisition bids since the devastating Kangaroo Island fires wiped out its plantations, so let's take a look at this latest offer.

Kangaroo Island Plantation takeover bid

Samuel Terry Asset Management's bid is to buy all fully paid ordinary shares in Kangaroo Island Plantation for $1.05 per share. The bidder has appointed Third Party Platform as its broker for the purchase of the Kangaroo Island Plantation shares on-market. 

On-market means the offer is unconditional, and provides current Kangaroo Island Plantation shareholders "a simple cash exit from [their] investment" according to the company's release.

Samuel Terry's offer states that $1.05 per share "is equivalent to the closing price of Kangaroo Island Plantation shares on 30 April 2021 (the last trading day prior to the announcement of the offer).

It's also equivalent to the 1 month volume-weighted average price (VWAP) of the company's shares to 30 April 2021 and represents a premium of 3% to the 3-month VWAP of the company's shares ($1.02).

The release also stated that it "the offer is a best and final offer, and the bidder will not increase the offer price."

Kangaroo Island Plantation's share price rose significantly at the beginning of last month, after the company rejected a land purchase deal worth $20 million. The company says its land holdings on the island are worth more than $60 million alone. Company director Keith Lamb said at the time:

While the company is open-minded to approaches it receives, the board is squarely focussed on maximising shareholder wealth and with this in mind, offers are considered on merit. This resolve has not altered since the tragic fires of 2019-20.

Kangaroo Island Plantation share price snapshot

The Kangaroo Island Plantation share price is up 3.2% the past week and 5.6% the past month, but has fallen 11% since 2021 began.

Motley Fool contributor Lucas Radbourne-Pugh has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

Two smiling work colleagues discuss an investment or business plan at their office.
Broker Notes

Which beaten down ASX 200 share did Goldman Sachs just upgrade to a buy rating?

The broker has become more bullish on this stock following last week's update.

Read more »

Hand holding Australian dollar (AUD) bills, symbolising ex dividend day. Passive income.
Best Shares

The best ASX shares to invest $1,000 in right now

Analysts think that putting your money into these stocks could be a smart move.

Read more »

green etf represented by letters E,T and F sitting on green grass
Share Market News

4 ASX ETFs to buy for FY25 and beyond

Could these ETFs be top options for investors looking for long term picks?

Read more »

A smiling woman sips coffee at a cafe ready to learn about ASX investing concepts.
Opinions

How I'd invest $10,000 in ASX shares right now

I’m bullish about the prospects of these stocks.

Read more »

A fortune teller looks into a crystal ball in an office surrounded by business people.
Share Market News

What's the outlook for shares vs. property in FY25?

Generally speaking, there is optimism among the experts for both shares and property in FY25.

Read more »

Happy shareholders clap and smile as they listen to a company earnings report.
Best Shares

Top ASX shares to buy before earnings season

It's almost time to take a look at the books!

Read more »

sad party goer sitting alone after celebration
Share Market News

Here are the top 10 ASX 200 shares today

The ASX 200 had a horrible end to its trading week this Friday.

Read more »

A young female investor sits in her home office looking at her ipad and smiling as she sees the QBE share price rising
Broker Notes

3 ASX shares brokers tip for significant outperformance in FY 2025

Leading brokers expect some significant outperformance from these three ASX shares.

Read more »