Dear friends of i3 Forum (Especially to those who own shares in Bplant & other Palm oil Company shares)

See this Full Reported News

Asked if the restructuring would involve divesting Boustead Plantation Bhd or Boustead Petroleum Marketing Sdn Bhd (BHPetrol), Mohamad Hasan said “in business, what is important is that we make money; we do business to get returns”. (Photo by Zahid Izzani/The Edge)

KUALA LUMPUR (July 13): Lembaga Tabung Angkatan Tentera (LTAT) should not be sentimental towards businesses under its portfolio in a restructuring to unlock value pursuant to the newly-announced multi-year strategy, said Minister of Defence Datuk Seri Mohamad Hasan. 

“In the corporate world, survival of the fittest is a ‘dog eat dog’ business, so there is no such thing as mercy or whatever it is. That’s why I said, put our sentiment aside when do business,” he told reporters after attending the launch of the Sustainable25 strategy here on Thursday (July 13).

“We cannot say we are sentimental towards something, or this is our ‘flagship’. There is no such thing as flagship, it is survival. So, how do we survive such challenging times, with the interest rate differential? US interest is 5% [versus] our 3% and so on. So how do we manage the situation, so that we remain relevant,” he said.

Asked if the restructuring would involve divesting Boustead Plantation Bhd or Boustead Petroleum Marketing Sdn Bhd (BHPetrol), Tok Mat, as he is fondly known, said “in business, what is important is that we make money; we do business to get returns”.

“There is no point in retaining business if you are going to lose money. It doesn’t mean that the privatisation of Boustead [Holdings Bhd], that’s the end of it. We want to re-position ourselves.

“The important thing is to look at our assets. There are assets such as those of ‘planting trees on a gold mine’, so we have to unlock that because this is the process for adding value,” he added.

Boustead Holdings was recently delisted under a RM703.2 million or 85.5 sen per share privatisation deal by LTAT.

Tok Mat also said LTAT intends to re-list Boustead on the local stock exchange, upon completion of the Sustainable25 strategy.

“Maybe in two years’ time, we will relaunch ourselves with a fresh company and we can position ourselves. How can we remain happy when our shares are traded at 55 sen and our net asset value is at RM1.70? It doesn’t make sense, does it?

“So why should we remain a public company? Might as well you just pull back for a while but in the next two years, who knows? With all these restructuring processes, with this unlocked value of our asset taking place, we can relaunch ourselves with a new ‘missile’,” he said.

Apart from Boustead Holdings and Boustead Plantation, which LTAT owns an 11% direct stake and a 57% indirect stake in respectively, the Armed Forces Fund Board is also a major shareholder in several other listed companies like Affin Bank Bhd (47%), Boustead Heavy Industries Corp Bhd (73%), and Pharmaniaga Bhd (60%).

Read more:

LTAT aims for RM15b AUM, lowering Boustead exposure through 2025 

LTAT almost lost control of Pharmaniaga due to discounted bid by certain parties, says Tok Mat

Pharmaniaga closes flat amid elevated trading after seven-year extension of govt concession

Pharmaniaga gets seven-year concession to provide medical supply logistics services to MOH 

Boustead said to be disposing of plantation arm 

“The important thing is to look at our assets. There are assets such as those of ‘planting trees on a gold mine’, so we have to unlock that because this is the process for adding value,” he added.

Calvin comments:

Assets such as those of 'planting trees on a gold mine'

Of all Boustead companies only Bplant got Palm Oil trees while others are involved with property, pharmaceutical products & bankings

Since the reference is ' PLANTING TREES ON GOLD MINE'

The emphasize is on "GOLD MINE" LANDS OWNED BY BOUSTEAD PLANTATION 

Read further

so we have to unlock that because this is the process for adding value,” he added.

How?

Some ways to unlock value are

a) SELL VALUABLE BPLANT LANDS JUST AS IT DID WITH SELLING KULAI YOUNG PALM OIL ESTATES TO YTL-POWER

b) OR SELL BPLANT SHARES LIKE IJM SOLD IJMPLANT TO KLK FOR RM3.10 PER SHARE (FROM RM1.86)

IN WHATEVER WAY YOU LOOK AT IT THERE WILL BE IMMENSE VALUE WHEN THESE COME INTO REALITIES OF VALUE-UNLOCKING

NOW WHAT IS SAID ABOUT BPLANT "PLANTING ON A GOLD MINE" IS ALSO TRUE ABOUT THPLANT, SIMEPLANT, IOI CORP, JTIASA, TSH RESOURCES, SOP, TAANN, HS PLANT, FGV AND OTHERS OWNING HUNDREDS OF THOUSANDS OF 'GOLD MINE LANDS' STILL AT OLD BOOK VALUE AS LOW AS RM3K  PER ACRE TO RM10K AN ACRE WHEN CURRENT PRICES {OF THOSE LANDS LOCATED NEAR CITIES/TOWNS & GROWTH ZONES) HAVE REACHED RM2OO,OOO TO RM2 MILLION PER ACRE OR EVEN MORE IN SOME PRIME PLACES

With Kind Regards

Calvin Tan

Please buy or sell after doing your own due diligence or consult your Remisier/Fund Manager Or Real Estate Valuer