LTAT’s Boustead shareholding crosses 90% in privatisation bid, sets stage for delisting

KUALA LUMPUR (May 17): Malaysia’s Armed Forces Fund Board (LTAT) has accumulated over 90% shares of Boustead Holdings Bhd, a threshold that paves the way for its privatisation of the company

The RM703.25 million deal’s principal adviser UOB Kay Hian Securities (M) Sdn Bhd announced on Wednesday (May 17) that LTAT now owns a 90.49% stake in Boustead, representing 1.83 billion acceptance shares, and that the offer will remain open until 5pm next Monday.

The offer is still conditional upon Bank Negara Malaysia's approval under Section 87(1) of the Financial Services Act and Section 99(1) of the Islamic Financial Services Act to allow the LTAT to acquire up to 100% equity interest in Boustead, which entail consequential changes to the effective equity interest of LTAT in Affin Bank Bhd Group.

Although LTAT owns 28.26% of Affin Bank Bhd, it is still required to seek central bank approval for any additional increase in its shareholding, since Boustead owns a 21% stake in the bank.

Last month, LTAT sold a 4.9% stake in Affin Bank to State Financial Secretary Sarawak for RM221.74 million, paring its shareholding in the bank from 33.2%, and doing away with the need for LTAT to seek the finance minister’s approval for shareholding that exceeds 50% in a financial institution.

Shortly after the divestment, LTAT bought a 7% stake in AHAM Asset Management Bhd, the former asset management arm of Affin Bank.

Shares of Boustead eased half sen or 0.6% to 85.5 sen on Wednesday, valuing it at RM1.73 billion.

Affin Bank, meanwhile, closed one sen or 0.5% higher at RM1.99, giving it a market capitalisation of RM4.52 billion.

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