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.