The Cabinet has approved and MOF has Approved the $2 bil loan guarantee !
That's how fast they act. I expect the MGO to come very fast too.
-------------------------------
In The Edge :
KUALA LUMPUR (Oct 9): The Finance Ministry has agreed to provide a government guarantee for the Armed Forces Fund Board (LTAT) to take out a RM2 billion loan to undertake the general offer it proposed to privatise its 68.01%-controlled Boustead Plantations Bhd at RM1.55 per share.

This was revealed by Defence Minister Datuk Seri Mohamad Hassan in Dewan Rakyat on Monday. LTAT is expected to fork out RM1.11 billion to acquire the remaining 716.66 million shares that are equivalent to a 31.99% stake in BPlant that it does not control.

“In accordance with the Cabinet’s decision, the Ministry of Finance has agreed to provide a government guarantee to LTAT to enable the fund to obtain a loan of RM2 billion from financial institutions to implement the general offer for BPlant,” said Mohamad, who is also the Rembau Member of Parliament.

PETALING JAYA: Defence minister Mohamad Hasan has clarified the government is only providing a “financial guarantee” to the Armed Forces Fund Board (LTAT) and not giving a RM2 billion grant for the fund to buy out Boustead Plantations Bhd (BPlant).

“The finance ministry (MoF) has agreed to provide LTAT with financial guarantees for it to obtain a RM2 billion loan from financial institutions to implement the (mandatory) general offer (MGO).

Now, LTAT will have to fork out approximately RM1.11 billion, at an offer price of RM1.55 per share, for the remaining 716.8 million shares, equivalent to a 32% interest, that it does not own.

Mohamad had previously said BHB, which was privatised by LTAT earlier this year, needed RM800 million by year end to meet its debt obligations.

Adding this RM800 million to the RM1.1 billion that it needs for the MGO, LTAT would have been in an extremely tight spot to raise almost RM2 billion.

The government’s move to provide LTAT the financial guarantee to raise up to RM2 billion will give some respite to the beleaguered pension fund.

@UncleFollower, you have 2 others options to pick : Hadi or Tun M . One promises to bring you to heaven and the other to bring you down to the drain. 🤣🤣🤣

-------------------------------------
UncleFollower wrote:
@speakup but but but...if there was one PM I personally really couldn't stand, it has to be Mahiaddin

I hold the view that the MGO is real.
Although NA may be just $1.28 /share, the realisable market value of the assets is 2-3 times higher than NA which is always kept at historical price. So, paying minority $1.55 is real cheap. Just look at the % disposal gain Bplant earned in the past many land disposals to convince yourself. Remember that land is scare and price is high.
After GO, the assets can be disposal in smaller parcels , quicker and out of the radar of the public.
LTAT /Boustead is chasing after time to resolve their heavy financial woes and to ensure annual 5% return to members from this year. With bridging finance from the government, LTAT has no time to waste but to do the deal fast .
If monority drag the "aborted" GO to the court, the trial will derail the transformation plan of LTAT which is the last thing they want to see.

The key words are "potential legal risk " , "legitimate".

In NST today.

KUALA LUMPUR: The Armed Forces Fund Board (LTAT) assumes the role of the buyer for Boustead Plantations Bhd (BPlant) to safeguard market integrity and fairness, according to chief executive Datuk Ahmad Nazim Abdul Rahman.

Under the strategic collaboration agreement (SCA), LTAT was a party to the joint offer with Boustead Holdings Bhd and Kuala Lumpur Kepong Bhd (KLK) for the remaining shares in BPlant.

"We stepped in to be the buyer of BPlant to mitigate any potential legal risk and to protect the integrity and the principle of fairness imbued in our capital market.

"This, as advised by our lawyers, gave rise to a legitimate expectation on the part of the minority shareholders that the mandatory general offer (MGO) would proceed," he told Business Times.
Ahmad Nazim added that LTAT has sufficient funding to undertake the MGO.


Disclosing the reason for the collapsed deal, he said it was due to Boustead's inability to meet the conditions precedent to the deal.

Some see the LTAT-KLK's SCA9 (if go thru') as doing a big favour for LTAT at generous price. Let me tell you that KLK IS NO ANGEL! For those who has long enough business experience with KLK can tell they are very shrewd and calculative businessmen.

KLK and Boustead jointly own Applied Agriculture Research (AAR) which provide agronomy advisory to both KLK and Bplant. Thru' AAR, KLK has full and accurate information and assessment on Bplant's estates which other bidders don't have. KLK went into the SCA with the knowledge that there was big gain to be realised eventually and of course they have the expertise to do it.

UncleFollower, I take my hat off to you for spending time to put things in perspective for the benefit of many. I fully concur with your view.

Those angry people who lashed out racist comments, discredit PMX and condemned present Unity government are those who missed the boat to make good money. They sold their shares at 65sen, 75 sen, 85, sen or 95sen when the share price continued to climb to their disbelief. Their hope to buy back at previous price level shattered when LTAT said the GO goes ahead. That's the reason for the anger!

Some people can simply shoot their mouth off.
--------------------------------
Tyranny wrote :
One otakudang said 1 day slide 5sen wahahaha

youarewelcome88, it was a question asked to the many who seem so sure that the intended GO by LTAT is a scam. You got to read all the comments by various people in the past 2 days to understand what I mean.
-----------------------------------------
youarewelcome88 wrote :
@Johnzhang...I am puzzled why you use the word... GO is a scam? and the need to short the counter? I am sorry if my views offended you though it is not my intention

Anyone shorting the share today if you damn sure LTAT's intention for GO is a scam ?
Dare you do it on Monday when the share price is still about $1.40!

RJ87, you ,like anybody else, entitle to have a view. Just trade and be guided by your own view. If you are damn sure, go to short the share all the way to 65sen.

It is absolutely unacceptable if you have also made racist comments in the past 2 days.

Over the past 2 days , see many angry members here, some even lash out uncalled for racist comments .
These people are very angry because there isn't any double limit down or bloodbath situation with respect to Bplant share price after the KLK deal was called off.

I think there is absolutely NO NEED TO BE ANGRY. Just let the event to gradually unfold and make judgement after that. At present, outsiders like us don't have factual knowledge what led to the collapse of the SCA, apart from the reason that the condition precedent couldn't be met by cut off date.

If you are hungry for double or triple limit down stocks, there are already many out there waiting for you to buy. LOL.

LTAT has this plan B and Plan C in the pocket.
Plan B which is being put in action now ie privatising Bplant
Plan C is to get Syed Mokthar's Tradewind or Sime Plantations to match $1,55 thru' very high level intervention.

The bottomline is LTAT need urgent cash to pare down the mounting borrowings and need to execute the the transformation plan to transform LTAT as portfolio investors like PNB and EPF.

Finally, LTAT is the big winner. Firstly take Bplant off the limelight (privatise) and sell the estates and land in smaller parcel/piecemeal to rake in $billion cash and still own Bplant 100% in a very much downsized company to "satisfy "the political agenda. Sum of parts of all the estates/lands will far exceed the price offered by KLK.

The losers are the panic retailers ! They get the real short end of the sticks.

The deal will go thru and will be done smoothly and in speed. Just wait.

Who are the buyers for over 50 million shares transacted just yesterday??

Cut off date normally used to differentiate 2 different periods especially for accounting and transactional matters. In the case of this deal, it may means the 2 different period of accounting and transactional matters before and after handling over of management control to KLK. I hope i read it right.😃

rohank71,
Where do you get the info that KLK issued ultimatum for LTAT to seal the deal before 22 Sept ?? Are you assuming the CUT OFF Date as dateline ?
I think it is important to find out what the CUT OFF date announced recently actually means.

KLK started acquiring share in Bplant from open market yesterday. It acquired 20 mil shares at $1.51.

Many retailers disposed Bplant from as low as 65 sen to 120 sen for whatever reasonings they made. Many are happy to take up $1.55 now. Some wish to hang on for realising more gains. So, Just be yourselves and be happy with the decision made by yourselves.

Enterprice value (EV) of KLK is about $100,000/planted ha.
EV of Bplant based on $1.55 is about $54,000/planted ha.
There is huge EV gap to bridge notwithstanding that KLK also has significant oleochemical business.
KLK shall bring significant expertise and operational efficiency to Bplant to narrow the valuation gap.

Joint offerors will likely be successful in privatising Bplant. But I hope the final outcome is
LTAT 35%, KLK 51%, Public 14% and Bplant remain listed like what happens in FGV.

SOP and Taann are both very well managed plantation with the lowest EV/ha seem to be good buy.

Comparable Companies : P/B Multiple (times), EV/PlantedArea (RM per Ha)
Sarawak Oil Palms Berhad 0.7x , $22,630
Far East Holdings Berhad 1.6x , $108,517
Kim Loong Resources Berhad 2.1x , $107,766
Ta Ann Holdings Berhad 0.9x , $30,467
Hap Seng Plantations Holdings Berhad 0.8x , $39,966
TSH Resources Berhad 0.7x , $46,630
Kretam Holdings Berhad 1.7x, $ 65,192
United Malacca Berhad 0.8x, $62,755
BLD Plantation Bhd 1.4x , $24,104

Some key point extracted from KLK's annoucement to clear the confusion post by some i3 menbers in this forum:

(1) On the unconditional date of the Proposed Acquisition, a mandatory GO (the proposed offer) to acquire all the remaining BPlant Shares not already owned by KLK/BHB/LTAT (known as Joint Offeror).

(2) The Proposed Offer will not be conditional upon any minimum level of valid acceptances of the Offer Shares as the Joint Offerors will hold more than 50% of the voting shares of BPlant upon completion of the Proposed Acquisition.

(3) All the Offer Shares tendered by the shareholders of BPlant will be taken up by the Company.

(4) Assuming the Company receives full acceptances under the Proposed Offer resulting
in BPlant becoming a 65.0%-owned subsidiary of KLK

(5) The Proposed Acquisition and Proposed Offer are subject to the following approval being obtained:
(i) the shareholders of BHB for the Proposed Acquisition and Proposed Offer at an
extraordinary general meeting to be convened; and
(ii) any other relevant authorities and/or parties, if required.
(6) For the avoidance of doubt, the Proposed Strategic Collaboration is not subject to the approval of the shareholders of the Company
(7) The completion of the sale and purchase of the Sale Shares is conditional upon the approval of the shareholders of BHB in a general meeting for the Proposed Acquisition and Proposed Offer, being fulfilled, waived or completed no earlier than 15 calendar days after the date of the SCA, or such other later date as may be agreed between the parties to the SCA in writing

irumisan,

KLK's annoucement clearly mentioned that the deal is NOT subject to KLK's shareholders approval. EGM shall be called by Boustead to approve the disposal. But you know that Boustead is 100% controlled by LTAT. Therefore Boustead EGM is just a formality.
You can take that the offer at $1.55 is on the table and won't "fly" away.
There is really no rush to sell unless one need the money urgently.
Take a few days to allow more news to surface and decide subsequently.
If Bplant remain listed, it is not a bad idea to keep holding Bplant to see how KLK enhance the valuation of the company in near term.

Once most minorities throw in and PAC achieve 90%, Bplant will be privatised. What happen post SCA is just between LTAT and KLK.

Just have the time to glance thru KLK's annoucement. Here are my observations.
1. I appear to be that KLK is not insistent to take BPlant private. If PAC reaches 90% control, Bplant will be privatised. It all hinge on who were the aggressive buyers last 2 months and what are their ultimate goals .
2. KLK is granted a call option to acquire the remaining 35% stake in LTAT/Boustead's hands. It's reported that call option price is $1.55 too. Details of the call option is not available including the excercise period . It may suggest that eventual privatisation is in 2 steps to mitigate political backlash ?
3. There is "potential land arrangement" for highly valuable land ie 222.9 ha in Seminyih and 508.5 ha of Malakoff estate in Seberang Perai. These 2 parcels may rake in as much as $600-700 mil to Bplant. Will that be paid out as special dividend post SCA benefitting LTAT/KLK ? Will there be more development land disposal post the SCA ?
Just for sharing only.

Rice is already cooked. Just waiting for the meal to be served. No need to speculate anymore. Just be happy for what is coming along.

There you go ...... closed at $1.37 with 34.5 mil share traded today!
My TP of $2.0 or possibly higher is within reach .

But the hurdle at $1.30 is pretty high just like at $1.00, $1.10, & $1.20 !
Who are blocking it ??

Heavy volume on last Friday is digested already. Good chance it will cross $1.30 today or tommorow.

Hapseng Con up 34 sen leh !💪

Ken,
to invest in TSH for its future land value (or future wealth as Calvin put it), I suggest you do thorough study about the Indonesian land code and practices for leasehold agriculture land that apply to foreigner in particular. The agriculture lands owned by foreigners are all leasehold for 30-35 years use only Legally speaking, the land shall be returned to the State upon expiry dates. Will the State grant lease extension especially if the lands are needed for development or has gone up in value considerably ??? If no lease extension, the residual land value will only go down year by year ( there is no future wealth). If lease extension is possible, at what cost will the extension be ??

Not too long ago , i have look into TSH and found out that all the leases are expiring between 2040 to 2051. The weighted average expiry year is by 2044. That means TSH only own the rights to use the land for another 20 years from now.

Does TSH fit into investing for future wealth ?

Just my view for your deliberation. Do you own homework.

Who are the aggressive buyers that led to 100% surge in share price in past 2 months ?
Are they a circle of well connected people who privy to the progress of the deal and may even be influential to the decision making ?
Mmm.........Something to ponder over the weekend.

Speakup,
why let go cheaply ? Just like some retail investors letting go their shares cheaply ?
There is market price for plantation land mah. Some discount shall be given for lock, stock and barrel deal.

(A) Bstead/LTAT to privatise BPlant ?
OR
(B) Bstead/LTAT to dispose their stakes in Bplant to a 3rd party ?
Which is most probable ?
I think (B) is most likely. Reasons :
1. No need to invite bids if (A) is the decision. Unless you think the Edge report is crap.
2. (A) doesn't not fit in LTAT's transformation program and targets.
3. Bstead/LTAT lack of financial muscle to successfully taking BPlant private .

Whoever is taking over BPlant shall pay a premium over the last traded price. So, it doesn't really matter to me.

Sslee,
You must well ask what's the probability of a takeover offer happening ? I think that is more positive way of looking at the issue.
You got to read between the lines what LTAT's CEO said about its transformation targets, what Tok Mat said when asked about Bplant's disposal and what the Edge reported and Bplant responses.
No one give you straight forward answer and you just have to draw your own conclusion and be guided by your own conclusion .

The pattern of trades, volume and share price development for Bplant in past 2 months give strong indication too.

I think we have to analyse the spectacular price increase of Bplant from 64sen in early June to $1.29 today from the correct angle.
It is NOT about "goreng" activity by shark. Bplant is never a good candidate for shark.
It is NOT about brighter CPO prospect. You don't see such price increase in all other pltn.
It is NOT about earnings or soon to be announced QR. Everyone already expect an unimpressive results at operating level for Q2.
IT IS ABOUT A TAKEOVER OFFER BY A THIRD PARTY !

many said M&A price $1.30 to$1.50. I consistently said around $2.00 and possibly higher.
Let's just hold our patience for possibly 1-2 weeks to know.

about 10 mil share traded in the first 25mins and a total 15.5 mil shares in first hour after opening bell and at higher price is quite something !

17.5 million shares traded today. About 6.5 mil share traded at $1.20 towards the last 10-15 mins before mkt closed.
Sellers have been persistently suppressing price from crossing every resistance level like $1.10 and $1.20. Buyers have been aggressively accumulating.
It appears to me that the Sellers are interested parties not letting the share price to "overshoot" before a material announcement. The Buyers are parties privy to a material development..
Just my personal reading. i can be wrong.

Calvin,
I don't think the call warrant issuer go that far to suppress the price. It cost them a lot to do so. They don't have so much Bplant share in hand !


Calvintaneng wrote :
Only reason to suppress bplant mother share is due to one bplant call warrant maturing on Sept 4, 2023

strong buy at $1.19. There has been deliberate effort by operator(s) to prevent price from surging pass $1.20 .

Hi Calvin,
Bplant will remain 70-80 sen now if there is no impending M&A to unlock value. The process in on going and advising your followers to switch out now is not very sound UNLESS you are quite certain that the M&A will not come to fruition! Otherwise, you are asking your followers to abandon their great race at the last lap.

How do you justify that Jtiasa, THplant and TSH are "cheap". Jtiasa, Thplant and TSH will remain "cheap" for a long time without M&A in sight! All these 3 plantations mentioned by you are NOT cheap in term of earning potential, consistency of dividend yield and most importantly management quality. Solely by looking at CPO operations , SOP, Taann, Hsplant , IOI, KLK etc are more superior in term of all the parameters I mentioned above.



Calvintaneng wrote on 9/8/23:
Since palm oil investing is quite simple and transparent the best time to buy bplant was at stage 3 to stage 4.
when high cash from fruitful harvest starts to pay down borrowing and land bank prices up after development in the direction of growth reaches those palm oil lands and they become too valuable for planting

now Bplant has reached stage 6 and 7 and all can see value being unlocked
but to buy now is now longer cheap at Rm1.19 ( was only 57 sen in year 2021)

that is why it is safer and better to buy Thplant, Jtiasa and Tsh resources and others when they are still at Stage 3 & 4 while prices still cheap and undemanding

Hi Joecool32,
There is typo error. It should be CI instead of CG. You will notice that the calculation i made in the same posting is for CI, not CG.

Johnzhang wrote on 9/8/23:
Just be mindful that call warrant CJ and CG is already trading at significant premium.
CJ's cash settlement based on current mother's price of $1.18 is merely 3.3 sen while CJ was last traded at 14.5 sen .
CI's cash settlement based on mother's $1.18 is only 4.3 sen while its last traded at 13.0 sen.

Just be mindful that call warrant CJ and CG is already trading at significant premium.
CJ's cash settlement based on current mother's price of $1.18 is merely 3.3 sen while CJ was last traded at 14.5 sen .
CI's cash settlement based on mother's $1.18 is only 4.3 sen while its last traded at 13.0 sen.

I think Q2 NPAT will surpass Q1's 40sen/share. That's already very impressive although not matching YOY. I am shifting some fund here again!

About 11 mil shares traded today is not small. Weighted average price traded is $1.18. It closed at $1.19 and considerable trade done after price fixing at 4.45pm.
Isn't it a very encouraging sign for something big going to materialize ?

Despite yesterday huge volume traded with considerable price increase we don't see profit taking activity today. I guess that's very positive .
The next resistance is $1.20 which is no a strong one. I think price may cross $1.20 resistance convincingly within days. Thereafter the sky is blue.