KUALA LUMPUR, Nov 5 — Malaysian oil palm plantation firm Kulim Malaysia Bhd said today its largest shareholder Johor Corp was proposing to take it private via a selective capital reduction and repayment (SCR) of RM4.10 per share, worth about RM2.2 billion.

“The Offer will remain open for the board’s acceptance until 1700 (0900 GMT) on Nov 20, 2015,” Kulim said in a stock exchange filing. “The non-interested directors will deliberate on the proposed SCR and upon consultation with an independent adviser to be appointed will decide on the next course of action.”

The offer was 24.24 per cent higher than Kulim’s last traded price of 3.30 ringgit per share. The stock has gained 24.7 per cent year to date.

That is far in excess of Malaysian palm oil prices , which have gained only 3.4 per cent year to date. Prices could draw support from a year-end drop in output going forward, though, as Malaysian palm production reached its annual peak in August and is expected to taper off towards the end of the year, traders and analysts forecast.

The benchmark stock index has fallen 4.3 per cent year to date.

Johor Corp owns 61.45 per cent of Kulim, Thomson Reuters Eikon data shows. — Reuters