Boustead: To buy back its plantation REIT. Al-Hadharah Boustead REIT will be taken private by its parent company, Boustead Holdings Bhd, making it the first REIT in the country to be privatised, according to sources. They speculated that the possible rationale for the exercise was the illiquid nature of Al-Hadharah's shares and that Boustead would justify its exercise as being an opportunity for shareholders to get a cash payout above what the market was valuing the asset. The announcement of the takeover would be made soon, the sources added. Affin Investment Bank Bhd would be handling the privatisation. (Source: The Star Daily)
The Board of Directors of Boustead REIT Managers Sdn Bhd (“Manager”) wishes to announce that it has today received a letter dated 16 July 2013 (“SUR Proposal Letter”) from Boustead Plantations Berhad (“BPB”), a major unitholder of the Fund, requesting the Manager to undertake the following corporate exercises:
(i) proposed amendment to the relevant clauses in the trust deed dated 11 December 2006 (amended and restated on 3 September 2009) (“Trust Deed”), executed between CIMB Islamic Trustee Berhad (“Trustee”) and the Manager, constituting the Fund to allow the following:
the implementation of the Proposed SUR (as defined below); and the conversion of the Fund to a private trust which sole beneficiary shall be BPB.
(collectively referred to as “Proposed Amendment”);
(ii) proposed selective unit redemption exercise, involving the redemption of all undivided interest in the Fund as constituted by the Trust Deed (“Units”) held by the Fund’s unitholders (save and except for the Units held by BPB) and the corresponding cash repayment of RM1.90 per Unit to the Fund’s unitholders (excluding BPB) (“Proposed SUR”); and
(iii) proposed special dividend of RM0.20 per Unit to all unitholders (including BPB) of the Fund (“Special Dividend”).
(the Proposed Amendment, Proposed SUR and Special Dividend are collectively referred to as the “Proposals”).
The cash payment under the Proposed SUR and the Special Dividend will collectively amount to RM2.10 per Unit.
The Board of Directors of the Manager, save for the Interested Directors (as defined in Section 6 of the SUR Proposal Letter), will deliberate on the Proposals and decide on the next course of action.
Further announcement(s) on the above matter will be made in due course.
Please refer to the attached SUR Proposal Letter for further information on the Proposals.
Converting from a public REIT to a private trust can have both advantages and disadvantages for unitholders. https://tunnelrush3.com
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