KUALA LUMPUR: The Armed Forces Fund Board (LTAT) intends to acquire Boustead Plantations Bhd (BPlant) by making a general offer for shares it does not own in BPlant at an offer price of RM1.55 a share.
The offer price represents a 22 per cent premium to the company's last traded share price.Trading in BPlant shares will resume at 10am today.
The announcement follows the collapse of a RM1.15 billion deal to sell a 33 per cent stake in BPlant to Kuala Lumpur Kepong Bhd (KLK).
"We wish to inform the board of directors of BPlant that the press release sets out, amongst others, our (LTAT's) intention to proceed with the general offer of BPlant at the offer price of RM1.55 per share notwithstanding the termination of the strategic collaboration agreement, subject to regulatory approvals.
"We will make the relevant announcement or notification as and when required in accordance with the requirements of Bursa Malaysia Securities Bhd, Securities Commission Malaysia and/or any other relevant authorities," LTAT said in a statement.
LTAT and BHB own 68 per cent in BPlant.
LTAT in a press release dated Oct 4, 2023 said LTAT 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.
"We are committed at addressing all the legacy issues within the BHB Group, in line with the Strategic Plan 2023-2025 (MAMPAN25). For LTAT to discharge its duty, per the mandate and function of a sustainable pension fund, it is vital for the legacy issues to be addressed first.
"We remain confident that the restructuring of the BHB Group will significantly improve LTAT's position, particularly since almost 50 per cent of our investment remains unlocked within the group," LTAT's Chief Executive Datuk Nazim Rahman said.
On Monday, Prime Minister Datuk Seri Anwar Ibrahim, speaking at the launch of "Karnival Segalanya Felda Wilayah Mempaga" in Felda Chemomoi, said, he had this week approved financial assistance of RM300 million for BHB and is looking for another RM2 billion to support LTAT from making losses.