KUALA LUMPUR (May 24): The Armed Forces Fund Board's (LTAT) privatisation offer for Boustead Holdings Bhd at 85.5 sen a share has turned unconditional on May 19, according to notice to shareholders on Wednesday (May 24). 

According to the filing to Bursa Malaysia, the notice stated that LTAT’s offer to acquire shares not already owned by it in Boustead became unconditional on May 19 after Bank Negara Malaysia gave the nod to LTAT to increase its aggregate effective interest in shares in Affin Bank Bhd Group of up to 49.2%. 

This, it said, is by virtue of LTAT acquiring up to 100% equity interest in Boustead which may entail consequential changes to the effective equity interest of the LTAT in Affin Bank. 

UOB Kay Hian, the principal adviser for the privatisation deal, said the central bank approval for LTAT to privatise Boustead is for compliance with Section 87(1) of the FSA, in regard to the ownership threshold of above 5% of Affin Bank and the condition must be fulfilled by June 12 this year.  

To recap, LTAT has avoided the need to seek the finance minister’s approval for its bid to privatise Boustead, as the exercise will not result in the board holding more than 50% effective interest in Affin Bank. 

The changes in regulatory approval came after LTAT’s move to divest a 4.95% stake in Affin Bank to State Financial Secretary Sarawak for RM221.74 million cash on Thursday (April 13), which leaves the fund with a 28.26% direct stake in Affin Bank, down from 33.21% previously. 

Boustead held another 20.93% stake in Affin Bank as at March 31, 2023. 

UOB Kay Hian had on May 18 said the closing time and date for the acceptance of the offer has been extended from 5pm on Monday, May 22, 2023 to 5pm on June 12, 2023.  

Accordingly, the offer will remain open for acceptance until 5pm on the extended closing date, it said. 

As of May 18, LTAT has already owned some 1.87 billion shares or 92.48% in Boustead. On May 19, it said LTAT has accepted another 18.5 million shares or 0.91%. 

Bursa Securities shall suspend the trading in the Boustead shares immediately upon the expiry of five market days from the closing date of the offer.  

Thereafter, LTAT will procure Boustead to take the requisite steps to withdraw its listing status from the Official List of Bursa Securities. 

Boustead shares were unchanged at 85.5 sen, implying a market capitalisation of RM1.73 billion. 
 

https://www.theedgemarkets.com/node/668303