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LTAT's general offer for Boustead Plantations shares becomes unconditional
savemalaysia
Publish date: Fri, 10 Nov 2023, 03:20 PM
KUALA LUMPUR (Nov 10): Lembaga Tabung Angkatan Tentera (LTAT) has issued an unconditional mandatory takeover offer (MTO) notice to acquire the remaining shares it does not own in Boustead Plantations Bhd (BPlant) for a cash price of RM1.55 per share, it said in a statement on Friday.
This follows LTAT’s agreement with Boustead Holdings Bhd to acquire 739.2 million shares or a 33% stake in BPlant after the RM1.15 billion takeover deal by Kuala Lumpur Kepong Bhd (KLK) fell through last month.
Boustead holds a 57.42% stake in BPlant, while LTAT holds 10.59%. Upon the completion of the shares acquisition, LTAT’s shareholding in BPlant will increase to 976.41 million shares, representing a 43.59% stake.
Accordingly, LTAT will extend an MTO to acquire all remaining BPlant shares it does not own for RM1.55 per share.
The cash price of RM1.55 per share represents a 21.09% premium on BPlant’s net assets per share of RM1.28 and is 3.33% higher than the conglomerate’s share price of RM1.50 at Friday’s noon break.
At RM1.50, BPlant is four sen or 2.74% higher than its last closing price of RM1.46 on Thursday, giving it a market capitalisation of RM3.36 billion. The counter has risen over 138% since the beginning of this year.
In a separate statement, LTAT said the offer represents a significant step forward in LTAT’s overall restructuring and turnaround of the Boustead Group and in rebalancing the pension fund board's investment portfolio to better position the fund vis-à-vis the risk return profile.
“The offer also provides LTAT greater flexibility in setting the strategic direction of BPlant and accelerate the value creation plans that meet the objective of LTAT. LTAT remains steadfast in enhancing its asset quality to provide sustainable returns to its contributors, in line with the LTAT Strategic Plan 2023-2025,” it added.
Last month, Defence Minister Datuk Seri Mohamad Hassan said the LTAT has decided to proceed with the buyout of BPlant even after the proposed stake purchase by KLK fell through. This is to safeguard the interests of the plantation group's shareholders and to protect LTAT from potential legal action.
KLK planned to acquire a 33% stake plus one share in BPlant from LTAT and Boustead for RM1.15 billion, then proceeding to extend a mandatory general offer at RM1.55 per share or RM1.11 billion in total to privatise the plantation group, which would result in KLK controlling a 65% stake, and LTAT the other 35%.
However, opposition MPs criticised the deal, arguing that it contradicted the government's goal of achieving a Bumiputera corporate equity target of 30% by 2025, as outlined in the 12th Malaysia Plan.
https://www.theedgemarkets.com/node/689644
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Discussions
Be the first to like this. Showing 2 of 2 comments
Meaning 21 days....circular & offer document out loh!
7 days for dilly dally of signing & acceptance loh!
11 days to pay us mah!
Thus conservatively u will get your money within 39 days thus by latest 22 December 2023 u get your money loh!
1. Buy other Plantations
Like TSH, NSOP, Inno, Taann Cepat and Jtiasa
2. Buy Banks & Finance
Maybank, Rhb, Abmb, Affin , PBank & MNRB
3. Buy Industry
HLI, Oriental, Kseng, Pantech, chinwel, csc and tongher
4.Buy technology
MI, Scicom, Myeg, willow & Agmo
2023-11-12 12:32
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calvintaneng
Happy day indeed for all shareholders of Bplant
Bplant is another privatisation success story after Tmakmur, Kulim, Kwantas and Ijm plant
Palm oil companies with its high value landbanks at old book value plus increasing Cpo prices over Rm3700 to Rm4200 a ton are prime candidates for takeovers or privatisation
And ahead for Bplant are these steps
1. LTAT will be giving out forms for Privatisation Acceptance
2. Whoever wishing to accept will need to fill in form by Dec 1st 2023
Payment will be within 10 days after forms are submitted
You will get full payment of Rm1.55
3. However, those who do not want to wait can sell at open market at Rm1.53 to Rm1.55 (can even go higher or lower according to current market sentiment
You will get money faster and your remisier will benefit from trading commissions incurred
4. For those who do nothing and after 60 days if LTAT finally gets above 90% threshold all your bplant shares will automatically be acquired by law and you will receive Rm1.55
5. But if after 60 days LTAT still unable to get above 90% then it might follow Sindora, TheStore or Tmakmur's example by raising the final offer price
This was what Pahang Sultan offered for Tmakmur when he raised final offer price by another 10 sen from Rm1.80 to Rm1.90
And it will be a rare occurrence if some entity rise up to obstruct takeover by buying and holding more than 10% to prevent privatisation as in the case of Harrison and Hl capital
All these will unfold in the days ahead
Exciting times are still ahead for all 🌴🌴🌴 🔥🔥🔥
2023-11-11 13:53