KUALA LUMPUR – Lembaga Tabung Angkatan Tentera (LTAT), Boustead Holdings Bhd (BHB) and Kuala Lumpur Kepong Bhd (KLK) have agreed not to proceed with KLK’s RM1.15 billion acquisition of a 33% stake in Boustead Plantations Bhd (BPlant).
BPlant and KLK said that “the condition precedent under the strategic collaboration agreement (SCA) will not be satisfied by the cut-off date of October 6, 2023.”
“In the circumstances, the parties mutually agree that the SCA shall be terminated with immediate effect on October 4, 2023,” both companies said in their respective filings with Bursa Malaysia today.
As a result of the termination, RHB Investment Bank Bhd, on behalf of KLK, said BHB shall return the deposit equivalent to about RM229.15 million to KLK within 14 business days from today, “or such other later date as may be agreed between the parties.”
Both KLK and BPlant said the SCA termination is not expected to have any material effect on their earnings, earnings per share, net asset (NA) and NA per share for the financial year ending September 30, 2024 (for KLK) and the financial year ending December 31, 2023 (for BPlant).
BPlant is controlled by LTAT and its wholly-owned unit BHB.
On August 24, 2023, KLK proposed to acquire 739.20 million shares, or a 33% stake and one share of BPlant from BHB for RM1.15 billion. KLK also proposed a mandatory take-over offer to acquire all the remaining BPlant shares not already owned by KLK, BHB and LTAT resulting from the proposed acquisition at RM1.55 per BPlant share.
The offer price values BPlant at RM3.47 billion.
In a statement on September 11, 2023, KLK announced that the parties involved had agreed to extend the cut-off date to September 22, 2023. Subsequently, the date was further extended to October 6, 2023. – October 4, 2023