KUALA LUMPUR (March 4): Lembaga Tabung Angkatan Tentera (LTAT) chief executive officer Mohammad Ashraf Md Radzi said the relisting of Boustead Plantations Bhd will only be pursued when its operations and financial performance is strengthened over the next five years.

“I believe, when it comes to Boustead Plantations, there is so much improvement that is available to us when we work on it over the next three years. In a short span of time — three to five years’ time, we will put all the necessary improvements in place. It will be ready for relisting again,” he was quoted as saying in the Public Accounts Committee (PAC) report. 

“All these things are not rocket science. We have expertise in the country when it comes to running oil palm plantations even from fellow government-linked companies (GLCs). There is a lot of learning and joint ventures that we can have access to. So, what we want to do is groom the business back to health,” he added. 

Boustead Plantations was privatised by LTAT and delisted from Bursa Malaysia’s Main Market in January 2024.

According to Mohammad Ashraf, this initiative will be implemented through LTAT’s Project Earth, a structured and strategic approach to restructuring its wholly owned Boustead Group and subsidiaries. Under the plan, LTAT intends to reduce its strategic asset holdings from 62.9% to 35%.

Further details of the plan remain confidential to prevent market disruptions and protect LTAT’s potential transactions, said the CEO. 

Mohammad Ashraf was responding to PAC vice chairman Teresa Kok Suh Sim, who inquired about LTAT’s latest plans concerning its equity portfolio, the restructuring of Boustead Group, and LTAT’s overall direction. 

Recall that in October 2023, LTAT and Boustead Holdings aborted a deal to sell 33% in their 68%-controlled Boustead Plantations then to Kuala Lumpur Kepong Bhd (KL:KLK) for RM1.15 billion following political resistance. Opposition politicians opposed KLK’s involvement, citing concerns over its non-Bumiputera status, despite KLK offering 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.

In March last year, Defence Minister Datuk Seri Mohamed Khaled Nordin stated that LTAT had no plans to sell its stake in Boustead Plantations, stressing that the pension fund was developing a long-term strategy to enhance the company’s operational performance and strategic direction.

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