SHAH ALAM: LTAT Mulls Boustead Privatisation. The Armed Forces Fund Board (LTAT) the controlling shareholder of Boustead Holdings Bhd (BHB), is mulling plans to delist the publicly listed company. However there is no indication whether it will also do so for Boustead’s subsidiary company, Boustead Heavy Industries Corporation Bhd (BHIC) which is also listed on Bursa Malaysia. BHIC is the company involved in heavy engineering and defence related businesses, including the LCS, LMS and submarine ISS contracts.
KUALA LUMPUR, May 28 — The Armed Forces Fund Board (LTAT), the controlling shareholder of Boustead Holdings Bhd (BHB), plans to propose an offer price of RM0.80 per ordinary share in BHB for its potential privatisation.
This offer price, however, is indicative only and non-binding, said LTAT in a statement here today.
“The final offer price in relation to the proposal (if undertaken) is subject to finalisation by LTAT,” it said, adding that the proposal is subject to, amongst others, the finalisation of the structure of the proposal, its requisite funding and the required regulatory approval for the proposal.
The pension fund highlighted that today’s notification does not amount to a firm intention that it will undertake the proposal.
“Accordingly, there can be no certainty that we will proceed with the proposal.
“We will make subsequent announcement(s) on any material development in relation to the proposal in accordance with the rules on take-overs, mergers and compulsory acquisitions,” it added.
BHB holds equity interest in four publicly listed companies, namely Affin Bank Bhd, Boustead Plantations Bhd, Boustead Heavy Industries Corp Bhd and Pharmaniaga Bhd, all of which LTAT also has a stake.
BHB stock bagged four sen to 63 sen today, with 572,200 shares traded.
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You can check other business publications for further news on this but most did not say anything much on the corporate exercise apart from that LTAT has not been getting much dividend from Boustead and other companies it hold interest in. For me instead of taking Boustead private, LTAT perhaps should use the money to make sure the LCS are completed instead , using its funds first and then claiming the money from the government once the ships are commissioned into service. But thats just me, a writer on focused on defence and national securities and not a business tycooon.
— Malaysian Defence