KLK, BHB and LTAT agree on Sept 22 cut-off date for BPlant deal

KLK, BHB and LTAT agree on Sept 22 cut-off date for BPlant deal

Under the agreement, KLK will own 65% of Boustead Plantations while LTAT and BHB will control the remaining 35%.

KLK will acquire 739.2 million shares or a 33% plus one share stake in Boustead Plantations for a cash consideration of RM1.15 billion.
PETALING JAYA:
Plantation group Kuala Lumpur Kepong Bhd (KLK) has signed a letter of agreement with Boustead Holdings Bhd (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 may mutually agree upon in writing.

In a filing today, KLK said all the other provisions contained in the SCA shall remain unchanged and be in full force and effect.

Under the agreement, KLK is expected to own 65% of Boustead Plantations Bhd (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.

BPlant posted a net loss of RM5.5 million in the second quarter ended June 30 (Q2 FY2023) from a net profit of RM73.2 million in the same period last year.

The group’s Q2 FY2023 revenue dipped 42% to RM201.2 million from RM348.9 million previously.

At the close today, BPlant’s shares went up one sen to RM1.51, giving it a market capitalisation of RM3.38 billion. KLK’s share price was unchanged at RM21.20, valuing the group at RM22.92 billion.

Stay current - Follow FMT on WhatsApp, Google news and Telegram

Subscribe to our newsletter and get news delivered to your mailbox.