PETALING JAYA: Boustead Holdings Bhd said it will privatise its plantation-based Al-Hadharah Boustead REIT at RM2.10 per share, confirming a report by StarBiz.
Boustead, Al-Hadharah's biggest shareholder, said on Tuesday it was planning to list an enlarged Boustead Plantations Bhd (BPB) via the consolidation of its plantation assets in an exercise aimed at unlocking value.
The group’s plantation business is currently held via Boustead Plantations, its wholly-owned subsidiary, and its 53.6% owned REIT.
Boustead said the move was expected to be a landmark transaction for Malaysia’s capital market, being the first privatisation of a REIT.
“The privatisation will be undertaken via a proposed selective unit redemption and repayment exercise which involves the redemption of all the units in Boustead REIT held by the unit holders and the corresponding cash repayment to unit holders,” the diversified group said.
It said the unit holders except for BPB will be offered a cash repayment and a special dividend amounting to a total of RM2.10 per unit.
“This represents a premium of 16.7% over the net asset value of Boustead REIT as at March 31, 2013 of RM1.80 per unit, or a premium of 13.5% above Boustead REIT’s five-day volume weighted average price of RM1.85 as at July 12, 2013,” Boustead added.
Managing director Tan Sri Lodin Wok Kamaruddin said the group intends to consolidate its plantation assets under BPB to achieve economies of scale and business synergies.
“This corporate exercise will allow the long-term unit holders of Boustead REIT, especially minorities, the opportunity to realise their investments at an attractive premium,” he said.
Boustead REIT, listed on the Main Market of Bursa Malaysia since 2007, is the first and only Islamic plantation REIT in Malaysia. It has an asset value of RM1.3bil and market capitalisation of RM1.2bil.
The trust owns 12 oil palm plantations and three palm oil mills in Peninsular Malaysia, except for the Sutera Estate, which is located in Sabah.
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