THE INVESTMENT APPROACH OF CALVIN TAN

BPLANT: LTAT/BOUSTEAD 33% BPLANT STAKE SALE TO KLK CALLED OFF. WILL THERE BE A PLAN B? By Calvin Tan

calvintaneng
Publish date: Wed, 04 Oct 2023, 11:27 PM
calvintaneng
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Hi Guys,

I have An Investment Approach I which I would like to all.

Dear Investing Fraternity of i3 Forum, (Please read to the end as we type now)

It has been confirmed. With dismay and sadness. The 33% Sale of Bplant shares by LTAT/Boustead has been called off.

Leaving us in a time of guessing what will be LTAT/Boustead's next move?

Now reported in Bursa are these revelations


TAKE-OVERS & MERGERS (PARAGRAPH/RULE 9.19 (47A))

BOUSTEAD PLANTATIONS BERHAD
Type
Announcement
Subject
TAKE-OVERS & MERGERS (PARAGRAPH/RULE 9.19 (47A))
Description
BOUSTEAD PLANTATIONS BERHAD ("BPLANT" OR "COMPANY")

PROPOSED STRATEGIC COLLABORATION AMONG BOUSTEAD HOLDINGS BERHAD ("BHB"), LEMBAGA TABUNG ANGKATAN TENTERA ("LTAT") AND KUALA LUMPUR KEPONG BERHAD (KLK) IN RELATION TO BPLANT

Reference is made to the Company’s announcements dated 24 August 2023 and 3 October 2023, in relation to the Proposed Strategic Collaboration. Unless otherwise defined, capitalised terms used in this announcement shall have the same meanings as defined in the aforesaid announcements.

 

The Board of BPlant wishes to announce that the controlling shareholders of the Company, BHB and LTAT, have informed the Company that the Condition Precedent under the SCA will not be satisfied by the Cut-Off Date of 6 October 2023 and accordingly, the parties to the SCA have agreed not to proceed with the Proposed Strategic Collaboration.

 

In the circumstances, the transacting parties mutually agree that the SCA shall be terminated with immediate effect on 4 October 2023.

 

The termination of the SCA is not expected to have any material effect on the earnings, earnings per share, NA and NA per share of the Company for the financial year ending 31 December 2023.

 

This announcement is dated 4 October 2023.


In agreement by both parties the deal ends on 4 October


But what happened to KLK's newly purchased 808 Million Bplant shares or about 36%




KUALA LUMPUR (Oct 4): Here is a brief recap of some corporate announcements that made news on Wednesday involving Kuala Lumpur Kepong Bhd, Boustead Plantations Bhd, Boustead Heavy Industries Corp Bhd, Boustead Holdings Bhd, KIP Real Estate Investment Trust, Hexza Corporation Bhd and YLI Holdings Bhd.

The proposed disposal of a 33% stake in Boustead Plantations Bhd (BPlant) by the Armed Forces Fund Board (LTAT) and Boustead Holdings Bhd to Kuala Lumpur Kepong Bhd (KLK) has fallen through. This confirms the report by The Edge on Tuesday. KLK said it was informed that the condition precedent under the strategic collaboration agreement inked between KLK, Boustead and LTAT “will not be satisfied by the cut-off date of Oct 6, 2023”. “In the circumstances, the parties mutually agree that the SCA shall be terminated with immediate effect on Oct 4, 2023,” it said. “As a result of the termination, Boustead Holdings Bhd shall return the deposit (equivalent to the sum of RM229.15 million) to KLK within 14 business days from Oct 4, 2023, or such other later date as may be agreed between the parties,” KLK added.

Both KLK and BPlant shares will resume trading on Thursday, after two days of suspension on Tuesday and Wednesday. To recap, the deal would have seen LTAT and Boustead dispose of a 33% stake in BPlant for RM1.15 billion or RM1.55 per share. KLK currently holds a direct 3.09% stake in BPlant, following its last acquisition of 6.11 million shares on Sept 29. Under the deal, KLK had planned to extend a mandatory general offer at RM1.55 a share for BPlant in order to raise its shareholding to 65%, and to subsequently delist the company. LTAT and Boustead would have held the remaining 35% upon completion of the now-defunct exercise.




As a result of the termination, Boustead Holdings Bhd shall return the deposit (equivalent to the sum of RM229.15 million) to KLK within 14 business days from Oct 4, 2023, or such other later date as may be agreed between the parties,” KLK added.


ok this is from KLK Bursa Filing

TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS) : NON RELATED PARTY TRANSACTIONS KUALA LUMPUR KEPONG BERHAD ("KLK" OR THE "COMPANY") PROPOSED STRATEGIC COLLABORATION AMONG KLK, BOUSTEAD HOLDINGS BERHAD ("BHB") AND LEMBAGA TABUNG ANGKATAN TENTERA ("LTAT") IN RELATION TO BOUSTEAD PLANTATIONS BERHAD ("BPLANT") ("PROPOSED STRATEGIC COLLABORATION")

KUALA LUMPUR KEPONG BERHAD
Type
Announcement
Subject
TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS)

NON RELATED PARTY TRANSACTIONS

Description
KUALA LUMPUR KEPONG BERHAD ("KLK" OR THE "COMPANY")

PROPOSED STRATEGIC COLLABORATION AMONG KLK, BOUSTEAD HOLDINGS BERHAD ("BHB") AND LEMBAGA TABUNG ANGKATAN TENTERA ("LTAT") IN RELATION TO BOUSTEAD PLANTATIONS BERHAD ("BPLANT") ("PROPOSED STRATEGIC COLLABORATION")


In the circumstances, the parties mutually agree By Farah Adilla 

(i)      the SCA shall be terminated with immediate effect on 4 October 2023; and

By Farah Adilla - April 30, 2021 @ 8:01pm

(ii)     as a result of the termination, BHB shall return the Deposit (equivalent to the sum of RM229,151,989.46) to KLK within 14 business days from 4 October 2023, or such other later date as may be agreed between the parties.

The termination of the SCA is not expected to have any material effect on the earnings, earnings per share, NA and NA per share of the KLK Group for the financial year ending 30 September 2024.

This announcement is dated 4 October 2023.


Now that is only a deposit. How much is the full sum? And how many shares have LTAT/Boustead already sold

All that and more yet to be revealed.


Now we see development from Govt as mentioned by Edgedaily


See


Govt to inject RM300 mil into LTAT this week

The government, meanwhile, has allocated RM300 million this week to help LTAT address its liquidity issues, and is looking for a total of RM2 billion by year end to "save" LTAT.

The money would help LTAT avoid losses, Prime Minister Datuk Seri Anwar Ibrahim was quoted as saying in news reports on Monday, as he revealed the financial support at the launch of the Felda Segalanya event at Felda Chemomoi, Teriang, Pahang.

It remains to be seen if there will be another buyer with a similar offer for BPlant. 

When explaining the proposal to the Dewan Rakyat, Defence Minister Datuk Seri Mohamad Hasan said 15 parties ― including Sime Darby Plantations Bhd, Tabung Haji, Tradewinds Corp and FGV Holdings Bhd ― were invited to submit their offers under a three-month bidding period, but many declined to participate while those who did mostly made too low of an offer.


So Rm300 Millions is to redeem back deposits paid by KLK? and Rm2 billions more to bail out LTAT/Boustead Rm7 billions debt? or to take over Bplant shares?


So is there an inkling that LTAT/ Boustead will make another offer for Bplant shares if no other Bumi related co will make an offer?


If so then there is hope for all long suffering Bplant shareholders.




From Past Example


THPLANT

1. Thplant in dire straight forced to sell its Tatau lands, Sarawak, cheap to Tamaco in year 2019/2020. That was when Cpo fell to Rm2,200 per ton and Thplant got high sukuk loan

It was a sale way below market value

Fortunately, it was called off as the buyer was a non bumi entity.

Now with Pan Borneo highway passing through Tatau & the land boom in Bintulu Thplant is in no hurry to sell cheap

Plus Cpo also recovered above Rm3,600 to Rm3,800 a ton.


So the aborted sale was a blessing in disguise




2. MSM/FGV

What about MSM sale of Chuping, Perlis lands,  to F&N? It was also aborted as F&N is a non bumi entity

But it ended well for MSM as there was a PLAN B. FGV came in to offer a higher price which is even better


See

​​​

MSM Malaysia sells Chuping land to F&N for RM156m

By NST Business - October 8, 2019 @ 8:54pm

twitter sharing button

​ ​ ​ ​ ​

KUALA LUMPUR: MSM Malaysia Holdings Bhd is selling 4,453.92ha of agriculture land in Chuping, Perlis to Fraser & Neave Holdings Bhd’s (F&N Holdings) wholly-owned F&N Agrivalley Sdn Bhd for RM156 million.

The land is currently used for the cultivation of rubber, oil palm and mangoes.

F&N Agrivalley plans to use the land for dairy cattle farming and milk production.

Ladang Chuping is situated 28km to the north-east of Kangar or about 8km to the south of Padang Besar.


​ ​ ​ ​ ​ ​

In its statement today, MSM group chief executive officer Datuk Khairil Anuar Aziz said the sale was effected via an open tender process which commenced in January.

He assured the entire process was conducted in a transparent manner eventhough the selling price is at 18 per cent discount on the market value of the land.

​ ​ NOTE: F& N Only Offered Rm156 Millions (at 18% discount)

THE DEAL WAS CALLED OFF AS F&N A NON BUMI ENTITY

THEN SEE PLAN B

FGV CAME IN WITH A HIGHER OFFER OF RM175 MILLIONS (which is 17% More than F&N's offer)






​​​​​​

FGVIF acquires MSM Perlis for FGV Chuping Agro Valley

By Farah Adilla - April 30, 2021 @ 8:01pm

KUALA LUMPUR: FGV Holdings Bhd's subsidiaries today entered into a binding term sheet on the respective disposal and acquisition of 100 per cent stake in MSM Perlis Sdn Bhd for RM175 million.

In a joint statement today, both companies said the agreement, between MSM Malaysia Holdings Bhd and FGV Integrated Farming Holdings Sdn Bhd (FGVIF), is set to be completed by the third quarter of this year.

The decisions were mandated by both FGV and MSM board to optimise the potential of the assets and strengthen the capital structure.


SO IT ENDED WELL FOR BOTH THPLANT AND MSM/FGV


WILL IT END WELL FOR BPLANT?


WILL THERE BE A PLAN B?



With kind regards


Calvin Tan

Please buy/sell after doing your own due diligence or consult your Remisier/Fund Manager



Note: It is not Bplant that needs a bailout. It is Boustead/Ltat plus Pharmaniaga/BHIC that needs bailout


BPlant is in fact a "Gold Mine" Cash Cow that can save them all when its Untold wealth is fully unlocked someday

For now please be careful as short term market is volatile for punters and traders. Longer term investor who bought early and cheap and all ok.


THERE WAS A PLAN B FOR THPLANT WHEN ITS SALE OF TATAU, SARAWAK LANDS TO NON BUMI TAMACO WAS ABORTED

THERE WAS A PLAN B FOR MSM/FGV AS SALE OF CHUPING, PERLIS LAND WAS UNDERVALUE

WILL THERE ALSO BE A PLAN BE FOR BPLANT

ASSETS OF BPLANT ARE OF GREAT VALUE LIKE "GOLD MINE"


ASSETS COULD BE SOLD AND CLASSIFIED AS

1) ABOVE MARKET VALUE

2) MARKET VALUE

3) BELOW MARKET VALUE

4) FORCE SALE VALUE (When Bank lelong)

5) FIRE SALE VALUE

During Asian Financial Crisis when nobody buy from High Court lelong at Force Sale Value)

Malaysian Govt set up Danaharta to prevent "FIRE SALE VALUE"

So is Rm1.55 undervalue for Bplant?


Discussions
Be the first to like this. Showing 7 of 7 comments

calvintaneng

THERE WAS A PLAN B FOR THPLANT WHEN ITS SALE OF TATAU, SARAWAK LANDS TO NON BUMI TAMACO WAS ABORTED

THERE WAS A PLAN B FOR MSM/FGV AS SALE OF CHUPING, PERLIS LAND WAS UNDERVALUE

WILL THERE ALSO BE A PLAN BE FOR BPLANT

ASSETS OF BPLANT ARE OF GREAT VALUE LIKE "GOLD MINE"

ASSETS COULD BE SOLD AND CLASSIFIED AS

1) ABOVE MARKET VALUE

2) MARKET VALUE

3) BELOW MARKET VALUE

4) FORCE SALE VALUE (When Bank lelong)

5) FIRE SALE VALUE
During Asian Financial Crisis when nobody buy from High Court lelong at Force Sale Value)
Malaysian Govt set up Danaharta to prevent "FIRE SALE VALUE"

So is Rm1.55 undervalue for Bplant?

2023-10-05 00:28

calvintaneng

SALE OF LANDS TO F&N BY MSM AT RM158 MILLIONS WAS ABORTED SINCE F&N NON BUMI ENTITY

BUT FGV GAVE A FINAL OFFER AT RM175 MILLIONS (17% HIGHER)

ITV ENDED WELL WITH MSM/FGV

WILL IT END WELL WITH BPLANT?

2023-10-05 00:34

calvintaneng

Plan B in full motion as LTAT emerge to take over Bplant at Rm1.55

Bplant will most probably follow Boustead and be delisted from Bursa

2023-10-05 14:06

calvintaneng

LTAT TAKING OVER BPLANT AT RM1.55 IS NOW A GIVEN
IT WAS A CHUN CHUN B PLAN

NOW WE "SEE" PLAN C EMERGING

BPLANT: KLK Aborted Purchase: LTAT Took over in Plan B: Now Will There Be A Plan C?, By Calvin Tan

https://klse.i3investor.com/web/blog/detail/www.eaglevisioninvest.com/2023-10-20-story-h-216991405-BPLANT_KLK_Aborted_Purchase_LTAT_Took_over_in_Plan_B_Now_Will_There_Be_

2023-10-20 22:08

stockraider

I think the takeover should be completed by Feb 2024 loh!

2023-11-02 10:20

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