LTAT: No development on Boustead privatisation


LEMBAGA Tabung Angkatan Tentera (LTAT) reiterated that there has been no material development on the privatisation of Boustead Holdings Bhd (BHB).

In a statement released recently, the armed forces fund noted it has until Feb 2, 2021, to announce its firm intention to the proposal as set out in a notice dated Oct 27, 2020.

“We wish to inform you that there has been no material development in respect of the proposal sub-sequent to the press notices.

“The proposal is subject to, among others, the finalisation of the structure of the proposal, the requisite funding for the proposal, the required regulatory approvals or other requisite approvals for the proposal,” LTAT stated.

It was further noted that the notification does not amount to a firm intention that the fund will undertake or proceed with the proposal.

LTAT said it will make subsequent announcements on any material development in relation to the proposal in accordance with the Rules on Take-overs, Mergers and Compulsory Acquisitions.

It was previously reported that LTAT had decided to take BHB private via a selective capital reduction and repayment exercise, while also raising its indicative price of 80 sen per share that was proposed on May 28 last year.

LTAT has been mulling to privatise the company since May 2020.

In August, Bank Negara Malaysia gave its approval for BHB’s privatisation, pursuant to LTAT’s announcement that it is considering to take BHB private.

As of June 26, 2020, LTAT holds a 59.42% stake in BHB, making it the largest shareholder in the company, while the Finance Ministry-controlled Retirement Fund Inc is its second-largest shareholder with a 9.19% stake. The proposed privatisation would cost LTAT about RM660 million cash.

For its third quarter ended Sept 30, 2020, BHB reported a net loss of RM51.8 million versus a net loss of RM155 million it made in the corresponding quarter the year prior, which was affected by the impairment of property, plant and equipment, and goodwill amounting to RM161.3 million.

Its quarterly revenue declined by 30.77% year-on-year to RM1.89 billion due to weaker performance by all segments, exacerbated by the negative effects of Covid-19 pandemic.