Trading of BPlant, KLK securities halted pending announcement

Friday 17 May 2024

KUALA LUMPUR (Oct 3): Trading of the securities in Boustead Plantations Bhd (BPlant) was suspended for the full day from 9am to 5pm on Tuesday, pending an announcement.

In an announcement, Bursa Malaysia Securities said the trading halt was at the request of BPlant. Trading of BPlant structured warrants was also suspended.

According to Bloomberg data, BPlant shares have been rising over the past year to their highest at RM1.52 on Aug 28, marking a 164.66% increase. The counter then pared its gains to RM1.46 on Sept 29, before plunging 13.01% to RM1.27 on Monday (Oct 2), amid news that a deal involving a stake in the oil palm concern was unsuccessful.

The Edge reported in the CEO Morning Brief dated Oct 3 that the proposed disposal of a 33% stake in BPlant by the Armed Forces Fund Board (LTAT) and Boustead Holdings Bhd to Kuala Lumpur Kepong Bhd (KLK) had fallen through.

The deal would have seen LTAT and Boustead receive RM1.15 billion from KLK for the 33% stake, as Boustead races to address its short-term debt obligations, which totalled RM3.99 billion at end-March.

KLK, LTAT and Boustead had already extended twice the deadline for the cut-off date of the strategic collaboration agreement inked between the three parties, first from Sept 11 to Sept 22, and later to Oct 6.

Year to date, however, BPlant shares have risen by 63 sen or 96.9%.

Meanwhile, trading of securities and structured warrants in KLK was also suspended from 9.02am on Tuesday, in conjunction with BPlant's request for suspension, according to a bourse filing.

KLK last closed at RM21.48 on Monday. According to Bloomberg data, its share price has fallen 3.94% year-to-date, but over the past one year, it is up by 8.11%.

Edited ByLam Jian Wyn & Surin Murugiah

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