by NUR HANANI AZMAN/ pic by TMR FILE

THE Armed Forces Fund Board’s (LTAT) application for an extension of time to announce its firm intention on the proposed privatisation of the Boustead Holdings Bhd has been approved.

The Securities Commission Malaysia had, vide its letter dated July 24, 2020, approved LTAT’s extension application until Oct 27, 2020. LTAT said save for the above, there has been no material development in respect of the proposal.

“We wish to highlight that the press notice issued by LTAT does not amount to a firm intention by LTAT to undertake the proposal.

“Accordingly, there can be no certainty that LTAT will proceed with the proposal,” it said in a statement yesterday.

At market close yesterday, Boustead’s share price was unchanged at 68 sen per share with market capitalisation at RM1.38 billion.

LTAT is considering to take 59%-owned Boustead private at an indicative price of 80 sen per share. The proposed privatisation would cost LTAT about RM660 million cash.

As at Dec 31, 2019, LTAT’s assets under management stood at RM9.48 billion. Boustead on July 17 unveiled a three-year group-wide transformation plan to strengthen its business prospects and unlock value.