KUALA LUMPUR – The Malaysian Armed Forces Veterans Association has urged Prime Minister Datuk Seri Anwar Ibrahim to intervene and resolve the issue surrounding the sale of 33% of Boustead Plantations Bhd’s (BPlant) shares to a private company.
The association’s president, Datuk Sharuddin Omar, said Anwar should be involved in the matter given his role as the Finance Minister, adding that more rational methods to resolve the issue should be explored to avoid the sale of the valuable holdings.
“The sale should not have taken place, as it touches a sensitive nerve among veterans. All parties must remember that this land represents the sweat, blood, and sacrifice of our fighters over 30 years ago in liberating our homeland from the threat of communism,” Sharuddin said.
“Is selling Boustead shares truly the best course of action? There are other, more shareholder-friendly methods available. We propose a rationalisation plan or, as a last resort, leveraging assets,” he told a press conference today.
“However, if no alternative exists, we appeal for the prime minister’s intervention, who also serves as the finance minister, to step in and prevent the sale.”
Yesterday, Defence Minister Datuk Seri Mohamad Hasan said the government is committed to prudently managing the sale of the 33% stake in BPlant to Kuala Lumpur Kepong Berhad (KLK).
He also clarified that the acquisition of the shares has yet to receive the prime minister’s approval.
Sharuddin pointed out that his party found the terms of the sale agreement, along with the set price, was “questionable” and “unfavourable” to the Armed Forces Fund Board (LTAT).
“BPlant boasts land assets exceeding 240,000 acres, and we are concerned that this sale may have long-term repercussions on LTAT, subsequently affecting the welfare of our military personnel and veterans,” he said.
Last month, KLK finalised a strategic collaboration agreement (SCA) with LTAT and BPlant’s parent company Boustead Holdings Bhd (BHB), resulting in KLK acquiring a 33% stake in BPlant with a cash consideration of RM1.15 billion.
Under the SCA, the joint bidders, comprising the three entities, will proceed with a mandatory takeover offer to acquire all remaining BPlant shares not owned by LTAT, BHB, and KLK at a cash offer price of RM1.55 per share.
This 33% holding encompasses a total of 739,199,966 ordinary shares and one share of the total shares issued by BPlant from BHB, with BPlant’s total offer price valued at RM3.47 billion. – September 19, 2023