KUALA LUMPUR: An opposition MP has urged the finance ministry to explain the rationale behind Boustead Plantations Bhd (BPlant) selling 33% of its shares to plantation group Kuala Lumpur Kepong Bhd (KLK).
“Why did BPlant sell its assets to KLK? Did BPlant fail to manage its oil palm plantations, thereby forcing it to sell its assets?” asked Wan Ahmad Fayhsal Wan Ahmad Kamal (PN-Machang).
He questioned if the sale was part of efforts to “plug holes” created by problems faced by Boustead Holdings Bhd (BHB). He claimed these problems included issues arising from the littoral combat ship (LCS) project.
Wan Fayhsal asked why the shares were not sold to Sime Darby Bhd or Permodalan Nasional Bhd (PNB) instead, if the government was committed to empowering Bumiputera equity ownership, as outlined in the 12th Malaysia Plan (12MP).
“Apart from the sale of BPlant’s assets and shares amounting to RM1.15 billion, we will also lose 241,000 acres of land that can be used for real estate development and other (development projects),” the Bersatu MP said while debating the mid-term review of the 12MP.
Yesterday, KLK signed a letter of agreement with BHB and the Armed Forces Fund Board (LTAT) to set the cut-off date for a strategic collaboration agreement (SCA) on Sept 22 or any other date that they might mutually agree upon in writing.
In yesterday’s Bursa filing, KLK said all other provisions contained in the SCA would remain unchanged and be in full force and effect. Under the agreement, KLK is expected to own 65% of BPlant while LTAT and BHB will control the remaining 35%.
On Aug 24, KLK signed a tripartite SCA with LTAT and its subsidiary BHB to jointly undertake a mandatory takeover offer to acquire all the remaining shares of BPlant which they do not own at a cash offer price of RM1.55 per share.
Under the agreement, KLK will acquire 739.2 million shares or a 33% plus one share stake in BPlant for a cash consideration of RM1.15 billion, or RM1.55 per share, valuing BPlant at RM3.47 billion.