KUALA LUMPUR (Dec 6): In a surprise move, Swiss-based multinational investment bank UBS Group has emerged as a substantial shareholder in Boustead Plantations Bhd (BPlant), which is in the midst of being privatised, with a 5.36% stake, or 120.06 million shares.

UBS had initially acquired 20.71 million shares in BPlant, equivalent to a 0.92% stake, on Nov 10, 2023, which increased its stake to 5.21%, or 116.67 million shares, surpassing the minimum 5% of the definition of a substantial shareholder, according to the Securities Industry (Reporting of Substantial Shareholding) Regulations 1998.

Following that, UBS continued to trade in the shares from Nov 14 to Nov 30, ending up with a 5.36% stake as at Dec 6, according to BPlant's filings to Bursa Malaysia.

According to Bloomberg, UBS is now the third largest shareholder in BPlant after Lembaga Tabung Angkatan Tentera (LTAT) (43.59%) and Boustead Holdings Bhd (24.42%), followed by Kuala Lumpur Kepong Bhd (KLK) (3.09%).

The initial shares acquisition took place on the same day that the Armed Forces pension fund made an unconditional mandatory takeover offer for the BPlant shares that it does not own, at RM1.55 per share, for BPlant to be taken private.

This follows LTAT’s agreement with Boustead Holdings to acquire 739.2 million shares or a 33% stake in BPlant, after a RM1.15 billion takeover bid by KLK fell through in October.

The Finance Ministry had agreed to provide a government guarantee for LTAT to take out a RM2 billion loan to undertake the general offer.

KLK first announced on Aug 24 that it planned to acquire the 33% stake for RM1.15 billion or RM1.55 per share, and would extend a mandatory general offer with plans to increase its stake to 65%.

LTAT and Boustead Holdings, meanwhile, would own the remaining 35%, with BPlant being taken private.

Opposition leaders claimed that the deal did not fit with the government’s aim of achieving Bumiputera corporate equity target of 30% by 2025, as underlined in the 12th Malaysia Plan.

Meanwhile, Boustead Holdings, which was privatised by LTAT earlier this year, needs RM800 million to meet its debt obligations.

Read also:
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