KUALA LUMPUR (Oct 4): The trading of shares in Boustead Plantations Bhd (BPlant) and Kuala Lumpur Kepong Bhd (KLK) continued for the second day as the 33% share sale from the Armed Forces Fund Board (LTAT) is still pending a final decision from the three parties.
In its Bursa filing on Wednesday, BPlant has requested for suspension for its shares from 9am to 5pm pending an announcement. Trading of KLK shares was also suspended in the same period, per its Tuesday filing to the local bourse.
Based on 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, amid news that a deal involving a stake in the oil palm concern was unsuccessful.
Nevertheless, its share price has increased by 119.36% after its last closing price on Monday. Its year-to-date shares have also risen by 63 sen or 96.9%.
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 9.69%.
On Tuesday, both BPlant and KLK had been asked by the stock exchange to confirm or deny if the acquisition had fallen through after The Edge, citing anonymous sources, reported that KLK’s RM1.15 billion acquisition of the 33% stake had been scrapped after two deadline extensions for the cut-off date, first from Sept 11 to Sept 22, and later to Oct 6.
"The proposed strategic collaboration is pending a final decision between the transacting parties; and the cut-off date for fulfilling the condition precedent is on Oct 6, 2023," the two companies said in their respective filings on Tuesday.
KLK also clarified that it "had no advance notice of, and there was no confirmation of the government’s intention" to "help LTAT avoid losses", as reportedly said by Prime Minister Datuk Seri Anwar Ibrahim on Monday (Oct 2).
Anwar on Monday reportedly said that the Ministry of Finance 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, Anwar was quoted as saying in news reports, as he revealed the financial support at the launch of the Felda Segalanya event at Felda Chemomoi, Teriang, Pahang.