KUALA LUMPUR (Sept 22): The cut-off date for the proposed disposal of a 33% stake in Boustead Plantations Bhd (BPlant) by the Armed Forces Fund Board (LTAT) has been extended for the second time.

Kuala Lumpur Kepong Bhd (KLK), which is acquiring the 33% stake from LTAT and Boustead Holdings Bhd, said the three parties have agreed for the cut-off date for the strategic collaboration agreement (SCA) to be extended for another two weeks to Oct 6.

The previous extension, announced on Sept 11, ended on Friday.

KLK first announced on Aug 24 that it plans to acquire the stake for RM1.15 billion or RM1.55 per share, and will extend a mandatory general offer with plans to increase its stake to 65%.

LTAT and Boustead, meanwhile, will own the remaining 35%, and BPlant will be taken private.

The deal has been in the spotlight as opposition leaders claimed that the deal does not fit with the government’s aim of achieving Bumiputera corporate equity target of 30% by 2025 underlined in its 12th Malaysia Plan.

In response, Defence Minister Datuk Seri Mohamad Hasan said that LTAT had invited 15 plantation-linked companies for the competitive bidding process, including Sime Darby Plantations Bhd, Tabung Haji, Tradewinds Corp and FGV Holdings Bhd.

Tradewinds, controlled by Tan Sri Syed Mokhtar Albukhary, was the only bumiputera company out of five that submitted a bid. However, its bid was too low, Mohamad Hasan told the Dewan Rakyat on Sept 18.

“Boustead as a company opted for the higher bid [from KLK] because they need RM800 million by year-end, and another RM1.7 billion to redeem their Islamic Medium-Term Notes,” he added.

Shares of KLK settled up eight sen or 0.38% on Friday to close at RM21.38, giving it a market capitalisation of RM23.11 billion.

BPlant shares closed unchanged at RM1.49, giving it a market capitalisation of RM3.34 billion.