Kangaroo Island Plantation Timbers MD demonstrates confidence in company with on-market purchase

Kangaroo Island Plantation Timbers Ltd (ASX:KPT) managing director Keith Lamb has demonstrated his confidence in the company’s strategy with the purchase of shares in an on-market transaction.   On May 24 Lamb acquired 5,000 shares at $1.15 per share in a direct interest, increasing the total number of securities held to 20,000 shares.   Reject takeover offer The company’s directors last week unanimously recommended that shareholders reject an on-market takeover offer from Samuel Terry Absolute Return Active Fund (STAM).  STAM already holds 26.26% of KPT and has offered to acquire all KPT shares at a price of $1.05 cash per share.  KPT chairman Paul McKenzie said the directors had recommended shareholders reject the offer for the following reasons:  The offer undervalues KPT;  The timing of the offer is opportunistic;  The offer does not include a premium for control; and  By selling KPT shares now, shareholders will lose the opportunity to participate in KPT’s potential upside.  $32 million road funding Earlier this month KPT welcomed the announcement in the Federal Budget of $32 million of road funding for Kangaroo Island as the final piece of the puzzle to clear the way for approval of its proposed KI Seaport development at Smith Bay.  The Federal funding has been earmarked for upgrades of two of the Island’s three arterial roads – Hog Bay Road and Playford Highway. Playford Highway is an integral part of the KPT’s route to the proposed export facility at Smith Bay.