KUALA LUMPUR: The Armed Forces Fund Board (LTAT) has reiterated that there is no certainty that it will proceed with the proposal to take over Boustead Holdings Bhd.
Providing the latest development in the possible privatisation today, LTAT said:
"There has been no material development in respect of the proposal.
"As highlighted in the press notice, the proposal is subject to, among others, the finalisation of the structure of the proposal, the requsite funding for the proposal and the required regulatory approvals for the proposal.
"We wish to highlight that this notification does not amount to a firm intention that we will undertake the proposal. Accordingly, there can be no certainty that we will proceed with the proposal," LTAT said in a circular to the media.
LTAT owns a 59 per cent stake in Boustead.
On May 29, Boustead announced that LTAT was considering to privatise the company at an offer price of 80 sen per share.
Boustead advised shareholders to exercise caution and seek appropriate advice when dealing in the ordinary shares of the company, since there was no certainty that LTAT would proceed with the proposal.
A report by Bloomberg said the potential privatisation came as LTAT attempted to restructure itself amid performance challenges that predate the Covid-19 crisis.
LTAT has roughly RM9.5 billion in assets under management, according to a report by Bernama on its 2019 financial results.
Among LTAT's largest holdings are its stake in Boustead and a 35 per cent stake in Affin Bank Bhd, according to data compiled by Bloomberg.
Boustead closed 0.8 per cent higher to 63 sen on a thin volume of 1.68 million shares today.