PETALING JAYA: The Armed Forces Fund Board (LTAT) has completed the takeover of Boustead Holdings Bhd (BHB) today, the closing date of the offer.
The fund’s shareholding in BHB now stands at approximately 97.63% which allows for the delisting of BHB and the invocation of the compulsory acquisition provision for the remaining shares, making it a wholly-owned subsidiary of LTAT.
Pursuant to this, BHB will take the requisite steps to submit an application to Bursa Securities for the withdrawal of its listing status from the official list of Bursa, in accordance with paragraph 16.07 of the Listing Requirements.
The fund issued its conditional voluntary takeover offer to the BHB board on March 2 for the remaining 40.58% it did not hold for a cash offer of 85.5 sen per share. It was expected to fork out a total of RM703.2 million if it snaps up the remaining 40.58% shares.
LTAT CEO Nazim Rahman said the privatisation of BHB marks “a new dawn” and represents a historical moment for the fund.
“This corporate exercise is the cornerstone of LTAT’s transformation journey which is critical to the success of the portfolio rebalancing plan,” he said in a statement today.
“With this milestone, we trust that BHB’s commercial value will be unlocked and its full potential unleashed to boost our assets under management, translating into better returns for our contributors, the members of the armed forces,” he added.
Nazim said the wholly-owned model allows LTAT to exercise full discretion and deep dive into the conglomerate’s pain points expeditiously.
“We are determined to reset BHB in a manner that meets LTAT’s objective of undertaking this privatisation exercise,” Nazim said.
BHB was incorporated as a public limited company in 1961. Since its listing, it has expanded into plantation, property, pharmaceuticals, heavy industries as well as trading, finance and investment.
BHB’s shares closed unchanged at 85.5 sen today, giving it a market capitalisation of RM1.73 billion.