THE Armed Forces Fund Board (LTAT) today announced that it has issued a takeover offer to buy remaining shares in Boustead Plantations Bhd at an offer price of RM1.55 a share.

This follows the signing of the unconditional share sale agreement with Boustead Holdings Berhad to acquire 739.2 million BPlant shares representing approximately 33% of the total issued shares of BPlant, on top of the equity it had held earlier.

LTAT said it was obliged to extend the offer - called Notice on Unconditional Mandatory Takeover offer – pursuant to the Capital Markets and Services Act 2007 and the Rules on Takeovers, Mergers and Compulsory acquisitions.

“Following the above-mentioned acquisition, LTAT holds 976.41 million shares in BPlant, representing 43.59% of the total issued shares of BPlant. 

“The offer represents a significant step forward in LTAT’s overall restructuring and turnaround of the BHB Group of Companies and in rebalancing its investment portfolio to better position the fund vis-à-vis the risk return profile. 

“The offer also provides LTAT greater flexibility in setting the strategic direction of BPlant and accelerates the value creation plans that meet the objective of LTAT,” it said in a statement.

The announcement today comes after the collapse of a RM1.15 billion deal to sell a 33% stake in BPlant to Kuala Lumpur Kepong Bhd (KLK).

The RM1.55 per share offer made by LTAT is the same offered by KLK.

KLK said its stake purchase deal had been terminated, with BPlant to return a deposit of RM229.2 million.

KLK had said a condition to finalise the share acquisition it had announced in August would not be satisfied by the cut-off date of October 6, but did not give further details.

In an earlier press release on October 4, LTAT said it and BHB as majority shareholders of BPlant will refocus its effort on the restructuring of the company to ensure it gets back on a stronger financial footing and chart a better business horizon moving forward.

It said this approach allows BPlant to retain agility and independence in charting its own course to ensure a sustainable future.

Last month, Prime Minister Anwar Ibrahim said he had approved financial assistance of RM300 million for BHB and is looking for another RM2 billion to support LTAT from incurring losses. – November 10, 2023.