KUALA LUMPUR: The Armed Forces Fund Board’s (LTAT) decision to make a voluntary takeover offer for a stake in Boustead Holdings Bhd (BHB) was based on commercial consideration, defence minister Mohamad Hasan said today.
“We want what is good for both the armed forces fund and BHB,” Mohamad told reporters after the announcement of the 2022 dividend for LTAT unitholders.
FMT Business had reported on March 2 that the LTAT had made an offer for a 40.58% stake or 822.51 million shares in BHB, with plans to eventually take it private.
The pension fund, which currently holds a 59.4% interest in BHB, is expected to fork out a total of RM703.2 million at 85.5 sen per share.
Mohamad said during the process, LTAT would also review the business model of BHB.
“Later on, we can relist this company. It doesn’t mean we keep it delisted permanently. It’s based on a good decision for both sides,” he said.
He said LTAT would also seek to restructure the company in the next year or two.
Mohamad also pointed out that listed companies must also comply with many requirements.
He said LTAT could delist BHB, then restructure it before it makes a public offer. “Then we will have a better and healthier company to offer to the public,” he said.
He described LTAT’s offer for BHB, which was 26% over the market price, as a good offer price. “Many have already taken up our offer,” he said.
In its March 2 filing with Bursa Malaysia, BHB said LTAT did not intend to maintain its listing status.
Neither would it be taking any steps to address any shortfall in the public shareholding spread of BHB in the event it did not meet the public spread requirements after the closing date.
LTAT said it currently does not have any plan to dismiss or make redundant any of the BHB employees as a direct consequence of the offer.
“The offer will not result in a mandatory offer by LTAT to acquire all the remaining voting shares in (BHB subsidiaries) Affin Bank Bhd, Boustead Plantations Bhd, Boustead Heavy Industries Corp Bhd and Pharmaniaga Bhd that are not already held by LTAT, whether direct or indirect, in view that LTAT already has statutory control over (Boustead),” it added.
Separately, Mohamad said the government was still considering whether or not to build its own battleship or to buy one.
“Most important thing is we want to deliver (the) battleship to (the) navy on time,” he added.