KUALA LUMPUR (Nov 10): Lembaga Tabung Angkatan Tentera (LTAT) has issued an unconditional mandatory takeover offer (MTO) notice to acquire the remaining shares it does not own in Boustead Plantations Bhd (BPlant) for a cash price of RM1.55 per share, it said in a statement on Friday.
This follows LTAT’s agreement with Boustead Holdings Bhd to acquire 739.2 million shares or a 33% stake in BPlant after the RM1.15 billion takeover deal by Kuala Lumpur Kepong Bhd (KLK) fell through last month.
Boustead holds a 57.42% stake in BPlant, while LTAT holds 10.59%. Upon the completion of the shares acquisition, LTAT’s shareholding in BPlant will increase to 976.41 million shares, representing a 43.59% stake.
Accordingly, LTAT will extend an MTO to acquire all remaining BPlant shares it does not own for RM1.55 per share.
The cash price of RM1.55 per share represents a 21.09% premium on BPlant’s net assets per share of RM1.28 and is 3.33% higher than the conglomerate’s share price of RM1.50 at Friday’s noon break.
At RM1.50, BPlant is four sen or 2.74% higher than its last closing price of RM1.46 on Thursday, giving it a market capitalisation of RM3.36 billion. The counter has risen over 138% since the beginning of this year.
In a separate statement, LTAT said the offer represents a significant step forward in LTAT’s overall restructuring and turnaround of the Boustead Group and in rebalancing the pension fund board's investment portfolio to better position the fund vis-à-vis the risk return profile.
“The offer also provides LTAT greater flexibility in setting the strategic direction of BPlant and accelerate the value creation plans that meet the objective of LTAT. LTAT remains steadfast in enhancing its asset quality to provide sustainable returns to its contributors, in line with the LTAT Strategic Plan 2023-2025,” it added.
Last month, Defence Minister Datuk Seri Mohamad Hassan said the LTAT has decided to proceed with the buyout of BPlant even after the proposed stake purchase by KLK fell through. This is to safeguard the interests of the plantation group's shareholders and to protect LTAT from potential legal action.
KLK planned to acquire a 33% stake plus one share in BPlant from LTAT and Boustead for RM1.15 billion, then proceeding to extend a mandatory general offer at RM1.55 per share or RM1.11 billion in total to privatise the plantation group, which would result in KLK controlling a 65% stake, and LTAT the other 35%.
However, opposition MPs criticised the deal, arguing that it contradicted the government's goal of achieving a Bumiputera corporate equity target of 30% by 2025, as outlined in the 12th Malaysia Plan.