KUALA LUMPUR (March 25): The Armed Forces Fund Board (LTAT) has no plans to sell its shareholdings in Boustead Plantations Bhd at this juncture, according to the Ministry of Defence (Mindef).
"LTAT is now studying a plan for the future of Boustead Plantations to determine its strategic direction and boost the company's operational performance to a higher level," said Defence Minister Datuk Seri Mohamed Khaled Nordin.
"This is an important step to value add to Boustead Plantations and realise its true potential to make it an asset that is competitive and able to provide a return sustainable for a long period of time," Khaled said in a written reply to a question from fellow lawmaker Dr Radzi Jidin (Perikatan Nasional—Putrajaya) in Parliament.
Radzi wanted to know whether LTAT planned to sell its stake in Boustead Plantations now that the company is no longer listed on Bursa Malaysia.
This was after LTAT and Boustead Holdings Bhd aborted a deal to sell 33% in their 68%-controlled Boustead Plantations then to Kuala Lumpur Kepong Bhd (KLK) for RM1.15 billion, which would have paved the way for a strategic partnership between them.
KLK and LTAT would then move to privatise Boustead Plantations, with LTAT retaining a 35% stake and KLK holding the remainder 65% equity interest.
The plan was scuttled after the deal drew widespread resistance from opposition politicians who were unhappy that KLK was not a Bumiputera buyer, despite being told that KLK was the one who offered the best deal.
This led to LTAT having to privatise Boustead Plantations on its own by forking out RM1.15 billion for the remaining stake it did not own, to avoid legal repercussions as it had made a joint bid with KLK.