PETALING JAYA: The Armed Forces Fund Board (LTAT) says a plan to restructure its wholly owned subsidiary, Boustead Holdings Bhd (BHB), is still being discussed by its stakeholders.
This follows claims that Ahmad Nazim Abdul Rahman resigned as LTAT CEO over a delay to the plan’s implementation, which involves a delayering of Boustead Group and an overhaul of its governance and operating models.
Last week, FMT quoted a source as saying that Nazim, who was appointed in June 2021, had formulated key initiatives to address LTAT’s RM3.5 billion debt and its dividend-trap structure.
However, the source said the initiative stalled in mid-December after newly appointed defence minister Khaled Nordin asked for the plan to be put on hold.
While Nazim respected the minister’s prerogative, he gave himself until Jan 30 to see if the plan would go ahead, according to the source. With no updates on the matter, he resigned on Jan 31.
According to Berita Harian, LTAT said no final decision has been made on the BHB restructuring plan and that discussions are ongoing.
However, the board maintained that the restructuring of BHB remains a major component of its 2023-2025 strategic plan.
“LTAT views this (plan) as a structural and investment decision that will undergo various internal and external processes to ensure it is made in the best interest of contributors,” it said.
LTAT said it remained committed to safeguarding its long-term financial sustainability while exploring other investment options.
It said the board’s investment decisions undergo a “rigorous procedure” and must be approved by the investment panel, the investment committee, and finally the board of directors.