PETALING JAYA: The Armed Forces Fund Board (LTAT) is firmly on track in its bid to privatise Boustead Holdings Bhd (BHB).
In a statement, the armed forces pension fund said the latest shareholding of LTAT in BHB is approximately 90.49%, accumulated via open market acquisition as well as through shareholders’ acceptances of the offer.
“As at the date of the offer notice, LTAT’s shareholding in BHB stood at 59.42%,” it said.
It issued a notice on the conditional voluntary takeover offer to the BHB board on March 2, 2023, for the remaining 40.58% it did not hold for a cash offer of 85.5 sen per share.
LTAT is expected to fork out a total of RM703.2 million if it snaps up the remaining 40.58% shares.
LTAT dispatched the offer document with acceptance form and transfer to BHB shareholders on March 23, 2023, followed by Kenanga Investment Bank Bhd issuing an independent advice circular on April 17, 2023, recommending the shareholders accept the offer.
CEO Nazim Rahman said this latest development is a significant milestone as it puts LTAT in a position to delist BHB within the first closing date of May 22, 2023 subject to all regulatory approvals being obtained to fulfill the offer conditions.
“The offer remains conditional on the regulatory approvals,” he noted.
The completion of the privatisation exercise will allow LTAT to accelerate BHB’s turnaround as part of its larger goal to rebalance its investment portfolio and ensure the funds’ long-term sustainability, the statement said.
“The turnaround will entail the restructuring of the group, rationalisation of its debt obligations and implementation of value creation activities,” Nazim said.